security
Social media biz says watchdog’s fine formula is ‘disproportionate’ and should stop counting global revenue
Meta appears to have decided Britain’s Online Safety Act would be much easier to swallow if Ofcom stopped counting all the money the social media giant makes everywhere else.
The Facebook and Instagram owner has launched a legal challenge against the UK comms regulator, arguing that the way Ofcom calculates fees and potential penalties under the Online Safety Act is fundamentally wrong because it relies on global turnover rather than UK-specific revenue.
The law allows Ofcom to fine companies for up to 10 percent of their qualifying worldwide revenue, or £18 million, whichever is higher. For Meta, which brought in about $201 billion last year, that means the numbers stop sounding like regulatory penalties and start sounding like national infrastructure projects.
Meta is now seeking a judicial review in the High Court over how Ofcom defines “qualifying worldwide revenue.”
The dispute boils down to three complaints. First, Meta argues that Ofcom should only consider UK revenue tied to regulated services, not the company’s global income. Second, it objects to rules that treat multiple services under the same corporate umbrella as jointly liable, potentially exposing the wider organization to larger penalties. Third, it is challenging how Ofcom aggregates revenue across services rather than assessing them individually.
An Ofcom spokesperson told The Register: “Meta have initiated a judicial review in relation to online safety fees and penalties. Under the Online Safety Act, these are to be set with reference to a provider’s ‘Qualifying Worldwide Revenue’, which we have defined based on a plain reading of the law.
“Disappointingly, Meta are objecting to the payment of fees, and any penalties that could be levied on companies in future, that are calculated on this basis. We will robustly defend our reasoning and decisions.”
A Meta spokesperson told The Register: “We are committed to cooperating constructively with Ofcom as it enforces the Online Safety Act. However, we and others in the tech industry believe its decisions on the methodology to calculate fees and potential fines are disproportionate. We believe fees and penalties should be based on the services being regulated in the countries they’re being regulated in. This would still allow Ofcom to impose the largest fines in UK corporate history.”
The case marks the latest flare-up between Silicon Valley and Britain over the Online Safety Act, which has already triggered complaints from US politicians, free speech campaigners, and tech firms unhappy about the scale of Ofcom’s new powers.
The regulator has not been shy about flexing them either. It has already threatened action against Elon Musk’s X over sexually explicit AI-generated images linked to Grok and, in March, issued its first fine under the regime against 4chan.
Meta appears to have looked at where that enforcement road leads and decided now was the time to argue about the math. ®
