Meta Takes UK Regulator Ofcom to Court Over Online Safety Fees

Context The Online Safety Act, effective July 2025, obliges tech firms that host user‑generated content to fund Ofcom’s enforcement work. Fees apply to companies with worldwide revenue above £250 million and are meant to cover the regulator’s operating costs.

Key Facts - Meta, the parent of Facebook and Instagram, filed a High Court challenge alleging Ofcom’s method of calculating fees and potential fines is “disproportionate.” - The regulator bases fees on a company’s qualifying worldwide revenue, not on earnings from UK services. Meta argues this forces a handful of large platforms to shoulder most of Ofcom’s costs. - Under the Act, breaches can attract fines up to 10 % of qualifying worldwide revenue or £18 million, whichever is higher. - Meta’s counsel, Monica Carss‑Frisk KC, says the approach “troubling” and inconsistent with the law’s intent to cover a broad range of internet services. - The High Court hearing, presided over by Mr Justice Chamberlain, flagged the dispute as a matter of wide public importance. A further hearing is set for June, with a full trial expected in October. - Epic Games and the Computer and Communications Industry Association have signaled intent to intervene. - Ofcom maintains its stance, citing a “plain reading of the law,” while Meta insists penalties should reflect revenue generated by regulated services in each country.

What It Means If the court curtails Ofcom’s fee formula, Meta and possibly other large platforms could see reduced financial obligations, reshaping the cost structure of UK online safety enforcement. A ruling that upholds Ofcom’s approach would reinforce the regulator’s ability to levy substantial fines—potentially the largest in UK corporate history—on any breach of the safety rules. The outcome will influence how other jurisdictions design fee regimes for digital safety compliance.

Watch for the June hearing, which will clarify whether the UK regulator can continue to fund its safety mandate through revenue‑based fees or must adopt a more service‑specific model.