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Meta and TikTok Challenge EU Tech Supervisory Fees at General Court

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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.

EU Pledges Global Digital Cooperation Amid Strained U.S. Ties

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The European Union announced on Thursday a new International Digital Strategy to strengthen cooperation with global partners, aiming to enhance its competitiveness and promote a rules-based digital order. The move comes as tensions with the United States escalate over EU regulations targeting major American tech firms.

EU tech chief Henna Virkkunen emphasized the bloc’s determination to remain a “stable and reliable partner” in the global digital landscape, despite growing geopolitical challenges. “We are living through a profound digital revolution that is reshaping economies and societies worldwide,” Virkkunen said during a press conference. “In this environment, the EU is stepping forward as a stable and reliable partner, deeply committed to digital cooperation with our allies and partners.”

The strategy outlines cooperation across multiple sectors, including energy, transport, finance, health, cybersecurity, emerging technologies like AI and quantum computing, and digital governance that supports democratic values and social cohesion. Protecting children on online platforms is also a key focus area.

The announcement follows increasing U.S. criticism of the EU’s tech regulations, particularly the Digital Markets Act and Digital Services Act, which aim to curb the influence of major tech companies. Washington has accused Brussels of unfairly targeting American firms and even threatened retaliatory tariffs following heavy fines imposed on U.S. tech giants.

Virkkunen explained that the EU’s digital plan rests on two core pillars: enhancing the bloc’s own competitiveness in strategic technologies and supporting partner nations in achieving their digital transformation objectives. “No country or region can lead the technological revolution alone,” she stressed, reaffirming the EU’s commitment to creating a global digital framework rooted in democratic principles and fundamental values.

The 27-country bloc sees its proactive engagement with international partners as a way to counterbalance strained transatlantic relations while asserting its leadership in shaping global digital standards.

Shein Faces EU Complaint Over ‘Dark Patterns’ in Online Sales Tactics

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Pan-European consumer group BEUC has filed a formal complaint with the European Commission against fast-fashion giant Shein, accusing the online retailer of using manipulative design techniques—commonly known as “dark patterns”—to push consumers into buying more on its app and website.

According to BEUC’s report, Shein employs a variety of aggressive tactics, including pop-ups that warn users they may lose discounts if they leave the app, countdown timers that pressure customers to complete purchases quickly, and infinite scrolling that keeps shoppers continuously engaged. BEUC argues that these techniques encourage overconsumption and may violate EU consumer protection laws.

The organization also highlighted the excessive notifications sent by the Shein app, with one example showing a single phone receiving 12 push notifications in one day. BEUC Director General Agustin Reyna stated, “For fast fashion you need to have volume, you need to have mass consumption, and these dark patterns are designed to stimulate mass consumption.”

Reyna added that a satisfactory resolution would require Shein to remove these manipulative features, though he questioned whether the company has sufficient incentive to alter practices that drive sales volume.

Shein Responds, Tensions Remain

In response, Shein said it is cooperating with EU regulators: “We are already working constructively with national consumer authorities and the EU Commission to demonstrate our commitment to complying with EU laws and regulations.” The company also expressed frustration that BEUC had declined its request for a meeting.

Shein’s success in Europe has been fueled by its highly engaging app experience, which incorporates gamification elements. For instance, its “Puppy Keep” game allows users to care for a virtual dog and earn reward points redeemable for free items. These points accumulate through daily log-ins, frequent scrolling, and purchases—further driving customer engagement and sales.

Broader Industry Under Scrutiny

BEUC’s complaint extends beyond Shein, calling on European consumer protection authorities to investigate similar practices across the broader fast-fashion industry. “Dark patterns are widely used by mass-market clothing retailers,” BEUC noted, urging regulators to expand their inquiry.

A total of 25 BEUC member organizations from 21 countries, including France, Germany, and Spain, have joined the complaint filed with the European Commission and the EU consumer protection network.

This latest action follows a separate warning issued by the European Commission last month, which notified Shein that some of its practices breach EU consumer law. The Commission warned that Shein faces potential fines if it fails to address these concerns.

Increasing Regulatory Pressure

In addition to consumer protection concerns, Shein is also under investigation by EU tech regulators for its compliance with online content rules as part of the bloc’s broader push to tighten oversight on major digital platforms.

Shein’s rival Temu, another rapidly growing discount platform, has also been targeted by BEUC for similar dark pattern practices.