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Meta and TikTok Win EU Court Challenge on Tech Fees, Regulators Must Recalculate

Meta Platforms and TikTok secured a legal victory on Wednesday against the European Commission over the way EU regulators calculated supervisory fees under the Digital Services Act (DSA). The General Court in Luxembourg ruled that the methodology used to determine the fees was flawed and must be reworked.

Both companies had challenged the 0.05% levy on annual worldwide net income, arguing the system unfairly imposed disproportionate costs. The fee is intended to fund the EU’s monitoring of large platforms’ compliance with the DSA, which requires them to better police harmful and illegal online content.

Court Ruling

The judges said the fee calculation method should have been set under a delegated act, rather than through implementing decisions, giving regulators 12 months to fix the legal framework. Importantly, the court said fees already paid for 2023 will not be reimbursed.

Reactions

  • The European Commission said the ruling requires only a “formal correction” and that it will adopt a delegated act to formalize the methodology.

  • TikTok welcomed the decision, pledging to monitor the new process.

  • Meta emphasized that the current system unfairly burdens profitable companies while large loss-making platforms avoid payment, despite imposing heavy regulatory costs.

Wider Context

The DSA, which came into effect in November 2022, gives the EU sweeping oversight powers and allows fines of up to 6% of global turnover for non-compliance. Other major platforms subject to supervisory fees include Amazon, Apple, Google, Microsoft, Booking.com, X (formerly Twitter), Snapchat, and Pinterest.

The cases were filed under references T-55/24 (Meta Platforms Ireland v Commission) and T-58/24 (TikTok Technology v Commission).

Netherlands Investigates Snapchat Over Vape Sales and Minor Protection

The Dutch consumer watchdog ACM has opened an investigation into Snapchat, accusing the platform of failing to adequately protect minors from illegal vape sellers, potentially breaching the EU’s Digital Services Act (DSA).

Key Details

  • Allegation: Snapchat may not be doing enough to stop vape sales targeting under-18s.

  • Regulation: The DSA obliges platforms to provide strong safeguards for minors and prevent illegal sales.

  • ACM stance: “We see enough indications of possible DSA breaches by Snapchat to open an investigation.”

  • Collaboration: ACM is working with the European Commission on the case.

Snapchat’s Response

  • Snap Inc. said it takes the issue seriously and will cooperate.

  • The company noted it has:

    • Invested heavily in proactive detection technology.

    • Banned advertising of vapes.

    • Attempted to block illicit content in searches.

  • A spokesperson admitted no system can “eliminate every threat online.”

Why It Matters

  • This is one of the first DSA-related probes into how platforms enforce rules on harmful and illegal products.

  • Highlights growing European scrutiny of U.S. social media firms.

  • The case could set a precedent for how regulators handle youth protection and illicit product sales online.

No timeline for the investigation has been provided.

U.S. Orders Diplomatic Lobbying Against EU’s Digital Services Act Over Free Speech Concerns

The Trump administration has directed U.S. diplomats in Europe to launch a lobbying campaign opposing the European Union’s Digital Services Act (DSA), citing concerns that the law imposes excessive restrictions on free speech and creates burdensome costs for U.S. tech companies.

An internal State Department cable dated August 4, signed by Secretary of State Marco Rubio, instructs American diplomats to actively engage with EU governments and digital regulators to build support for repealing or amending the DSA and related legislation. The memo labels parts of the law as “undue” limits on expression under the guise of combating hate speech and misinformation.

The DSA is designed to hold tech companies accountable for illegal content online, such as hate speech and child sexual abuse material. However, the Trump administration views it as an infringement on free speech, especially political and religious expression, and has criticized the EU for what it sees as censorship targeting conservative voices.

Rubio’s directive includes specific talking points urging diplomats to push for narrowing the definition of illegal content, scaling back fines for non-compliance, and reducing reliance on “trusted flaggers” — entities authorized to report illegal content to platforms. It also calls for investigations into censorship cases affecting U.S. citizens and companies, including arrests and online suspensions linked to the DSA.

The European Commission rejects censorship accusations, emphasizing freedom of expression as a fundamental right. It maintains that the DSA aims to keep digital markets open and is not intended to target U.S. companies. EU officials also assert that the DSA and related tech laws are not part of ongoing trade negotiations with the U.S.

The lobbying effort marks an escalation of U.S. efforts to assert its free speech traditions internationally and intensifies tensions with European allies, with previous criticisms from officials such as Vice President JD Vance accusing Europe of suppressing certain political groups.

U.S. tech giants, including Meta and Tesla, have voiced concerns over the DSA. Meanwhile, the U.S. Federal Communications Commission chairman has criticized the law’s compatibility with American free speech norms. Rubio has even threatened visa bans on foreign officials involved in “censoring” Americans.