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Meta and TikTok Challenge EU Tech Supervisory Fees at General Court

/in /tarafından

Meta Platforms and TikTok have taken their dispute over the European Union’s supervisory fees to the EU General Court, the bloc’s second highest judicial authority. Both companies argue that the fees imposed under the 2022 Digital Services Act (DSA) are disproportionate and based on flawed calculations.

The DSA requires large online platforms, including Meta, TikTok, and 16 other firms, to pay an annual supervisory fee of 0.05% of their global net income. This fee is intended to cover the European Commission’s costs for monitoring compliance with the law. The fee’s size depends on each company’s average monthly active users and their profit or loss status in the previous year.

Meta questioned the methodology used by the Commission, saying it unfairly applied group-level revenue rather than that of the subsidiary. Meta’s lawyer, Assimakis Komninos, criticized the fee’s calculation as opaque and inconsistent with the DSA’s principles, describing it as a “black box” that led to “implausible and absurd results.”

TikTok, owned by ByteDance, echoed these concerns. TikTok’s lawyer Bill Batchelor accused the Commission of inflating fees through double-counting users who access the platform on multiple devices and argued that the fee exceeded legal limits by referencing group profits rather than individual entities.

The European Commission defended its approach. Commission lawyer Lorna Armati said using consolidated group profits was justified, as the group’s total financial resources are available to pay the fee. She also rejected claims of insufficient transparency or unfair treatment.

The court is expected to deliver its ruling on these cases, Meta Platforms Ireland v Commission and TikTok Technology v Commission, next year.

X Adds Blue Checkmark Disclaimer to Address EU Antitrust Probe

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Elon Musk’s social media platform X has added a more prominent disclaimer to its blue checkmark feature, aiming to deflect a potential fine from European Union antitrust regulators, according to a source familiar with the matter.

The European Commission charged X in July 2023 with misleading users about the meaning of the blue checkmark. Traditionally, the badge indicated that an account belonged to a verified public figure. However, following Musk’s acquisition of the platform in 2022, the checkmark began to signify only that an account holder was a paid subscriber, not necessarily a verified identity.

Although X has not admitted any wrongdoing, it recently began displaying a more noticeable disclaimer clarifying the meaning of the blue checkmark. According to the source, this move is not part of any formal settlement proposal with the EU’s tech enforcement body but is seen as a voluntary step to demonstrate compliance. The new disclaimer has been in place for about a week.

The European Commission acknowledged X’s decision, with a spokesperson stating: “Our investigation related to the blue checkmark is ongoing.” X declined to comment when contacted.

The probe is being conducted under the EU’s Digital Services Act (DSA), which mandates that large online platforms take stronger action against illegal or harmful content or face penalties of up to 6% of their global annual revenue. The DSA also requires transparency in how online platforms present information to users.

Bloomberg first reported on X’s decision to highlight the disclaimer.

TikTok Charged with Breaching EU Content Rules Under Digital Services Act

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TikTok has been formally charged by EU regulators with violating the Digital Services Act (DSA), a sweeping content regulation law aimed at increasing transparency and accountability for major online platforms. The European Commission’s preliminary findings, released Thursday, could expose TikTok’s parent company ByteDance to a fine of up to 6% of global turnover.

Key Allegations:

The European Commission said TikTok has failed to:

  • Publish a comprehensive ad repository, as required by the DSA, which would allow researchers and users to detect scam and manipulative advertisements.

  • Provide clear data on ad content, targeting practices, and disclosure of the entity behind each ad.

  • Ensure full ad transparency, a core DSA obligation to combat disinformation and exploitative practices.

“Transparency in online advertising — who pays and how audiences are targeted — is essential to safeguarding the public interest,” said Henna Virkkunen, EU digital policy chief.

TikTok’s Response:

TikTok said it supports the goals of the DSA and is working to improve its ad transparency tools. However, it disagreed with the Commission’s interpretation and criticized the lack of clear, public guidance:

“Guidance is being delivered via preliminary findings rather than clear, public guidelines,” a spokesperson said. “A level playing field and consistent enforcement are essential.”

What’s Next:

  • TikTok now has the opportunity to review the evidence and submit a written response before the Commission makes a final decision.

  • If found guilty of breaching the DSA, ByteDance could face financial penalties and further scrutiny over how it manages online advertising and content moderation.

  • TikTok is also under a separate EU investigation into its election-related risk management practices.

The case marks a significant escalation in the EU’s efforts to enforce the DSA, which came into effect in 2023 to curb harmful content, improve transparency, and hold tech giants accountable for the societal impact of their platforms.