Tech Giant Opposes Ofcom’s Revenue Based Fee System
Meta has started a legal battle against Ofcom over new charges introduced under the UK’s Online Safety Act. The company, which owns Facebook and Instagram, claims the regulator’s fee system is unfair and places too much pressure on a small number of major technology firms.
The Online Safety Act became law in July 2025. The legislation aims to improve online safety and reduce harmful content across digital platforms. To support this work, Ofcom introduced a payment system that requires large internet companies to fund part of the regulator’s online safety operations.
Meta Questions Ofcom’s Fee Calculations
Under the current rules, companies earning more than £250 million each year must pay regulatory fees. Ofcom calculates these charges using worldwide qualifying revenue instead of income earned only in the UK.
Meta argues that this approach is excessive. The company believes the regulator should not rely heavily on global earnings when calculating costs linked to UK services.
Lawyers representing Meta told the High Court that only a few large companies are carrying most of the financial burden, even though the law applies to many online services operating in Britain.
Concerns Over Massive Financial Penalties
The company also challenged Ofcom’s penalty system. Under the Online Safety Act, regulators can fine companies up to 10% of their worldwide qualifying revenue or £18 million, depending on which amount is higher.
Meta says the system for calculating penalties between companies owned by the same parent group also creates problems. The company wants the court to review these rules and reconsider how Ofcom applies them.
Epic Games May Join the Legal Case
During a preliminary hearing in London, the High Court confirmed that the dispute raises important public interest questions. The court also heard that Epic Games and the Computer and Communications Industry Association may request permission to join the case.
Mr Justice Chamberlain scheduled another hearing for June, while the full court hearing is expected to take place in October.
Previous Challenges to the Online Safety Act
The legal challenge follows an earlier case involving Wikipedia. Last year, Wikipedia failed to overturn parts of the Online Safety Act linked to age verification rules.
The result of Meta’s case could shape how the UK regulates global technology companies in the future. Many businesses are now watching closely to see whether the court supports Ofcom’s current fee structure or orders changes to the system.
