Yazılar

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

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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).

Senator Ted Cruz Proposes AI ‘Sandbox’ to Ease Federal Regulations

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U.S. Senator Ted Cruz on Wednesday introduced a bill that would create a regulatory “AI sandbox” allowing artificial intelligence companies to apply for temporary exemptions from certain federal rules while developing new technologies.

Cruz, who chairs the Senate Commerce Committee, described the proposal as a way to help U.S. firms stay competitive with China by lowering regulatory barriers. “A regulatory sandbox is not a free pass. People creating or using AI still have to follow the same laws as everyone else,” Cruz said during a subcommittee hearing.

Key Details

  • The bill would let federal agencies grant two-year exemptions to companies that apply, provided they outline safety and financial risks and how they would mitigate them.

  • The Office of Science and Technology Policy (OSTP) would be given authority to override agency denials of waivers.

  • The sandbox would apply only at the federal level — Cruz’s proposal does not preempt state-level AI regulations, despite pressure from the tech industry.

Industry Push and Opposition

Major AI developers including OpenAI, Google, and Meta have urged the Trump administration to reduce regulatory barriers. The White House OSTP has also begun seeking public input on which regulations hinder AI growth.

Consumer advocacy group Public Citizen sharply criticized Cruz’s bill, arguing it “treats Americans as test subjects” and warning against OSTP’s ability to override regulators. “The sob stories of AI companies being ‘held back’ by regulation are simply not true,” said J.B. Branch, the group’s Big Tech accountability advocate, pointing to record-high valuations of AI firms.

State-Level Rules

While Cruz’s bill avoids limiting state laws, AI regulation is already expanding at the state level:

  • California bans unauthorized political deepfakes and requires patient disclosure when AI is used in healthcare.

  • Colorado passed a law to curb AI discrimination in hiring, housing, banking, and other areas — its enforcement was pushed to mid-2026 after lobbying by the tech sector.

  • Several states have criminalized AI-generated explicit imagery without consent.

OSTP director Michael Kratsios told the committee that such state measures risk stifling innovation, suggesting Congress revisit preemption in the future.

The proposal is likely to fuel debate between those who see regulation as a barrier to U.S. innovation and those who warn of the risks of treating AI experimentation as a public trial.

Klarna IPO Puts Spotlight on BNPL Trends with Five Key Charts

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As Klarna prepares for its long-anticipated New York IPO, attention has turned once again to the rise of buy now, pay later (BNPL) services that have reshaped consumer financing in the U.S. and abroad. Once a niche option, BNPL has surged in popularity since the pandemic, with billions in online sales now processed through installment plans.

1. Share of Online Spending

  • From January to August 2025, U.S. consumers spent $696.2 billion online, with $56.3 billion (8.1%) of that coming from BNPL purchases, per Adobe Analytics.

  • In 2024, BNPL accounted for $82.4 billion in total online spending — a 9.9% increase year-over-year.

  • BNPL’s share of e-commerce continues to expand, though it still trails far behind credit card usage.

2. On-Time Payments

  • Klarna boasts a 99% global repayment rate, while Afterpay reported 96% of customers paid on time in Q2 2025.

  • Affirm disclosed a 2.3% delinquency rate (loans over 30 days late) as of June 2025.

  • However, Federal Reserve Bank of Philadelphia data shows a slight drop in punctuality: “pay-in-four” users making all payments on time fell by 1 percentage point between late 2023 and late 2024.

3. Average Monthly Payment

  • 57% of BNPL users reported monthly payments of $100 or less, according to The Motley Fool.

  • By contrast, the average monthly credit card payment was $181 (Experian, Q1 2025).

  • Only 1% of BNPL users carried monthly payments above $1,000, suggesting most use the service for small-ticket items rather than large purchases.

4. Uses Across Generations

  • Millennials and Gen Z are the most frequent BNPL users, particularly for everyday purchases like clothing or electronics (PYMNTS Intelligence 2024).

  • Baby Boomers and seniors remain skeptical, with the majority saying they would not use BNPL for daily expenses.

  • This generational divide reflects differences in trust, digital adoption, and attitudes toward debt.

5. Credit Scores

  • BNPL attracts more consumers with subprime (580–619) and near-prime (620–659) credit scores than traditional credit products.

  • Still, about 50% of applicants have scores above 660, suggesting the service appeals broadly across credit tiers (LexisNexis Risk Solutions, 2023).

  • Because most BNPL providers don’t report to credit bureaus, regulators warn this creates a “blind spot” — untracked debt that could mask financial vulnerability.

Regulatory Backdrop

  • The CFPB had required BNPL firms to handle disputes, issue refunds, and send billing statements, but the Trump administration revoked that rule, easing compliance burdens for lenders.

  • Consumer advocates argue this leaves gaps in oversight, particularly as BNPL expands beyond luxury goods into everyday spending.

Outlook

Klarna’s IPO underscores how deeply BNPL has penetrated consumer finance, growing rapidly as shoppers seek flexibility amid high living costs. But questions remain: Can BNPL remain sustainable if delinquency rates creep up, and will regulators reimpose stricter protections?