Kristina Roberts
Meta and TikTok, two of the biggest social media companies in the world, are fighting against fees charged by the European Union. They argue that the way these fees are calculated is unfair and unclear. The case is being heard in the EU’s second-highest court, and a decision is expected next year.
The dispute is about a rule called the Digital Services Act (DSA), which became law in 2022. Under this law, big tech companies must pay a fee to cover the cost of monitoring their activities in the EU. The fee is set at 0.05% of their yearly global net income. The amount each company pays depends on how many monthly active users they have and whether they made a profit or loss in the previous year.
Meta, the company behind Facebook and Instagram, says it is not trying to avoid paying its share but believes the fee calculation is wrong. The company’s lawyer, Assimakis Komninos, told the court that the way the fee was decided was not transparent. He said the rules go against the purpose of the law and have led to unfair results. “The method is full of black boxes, and we still don’t know how the fee was calculated,” he said.
TikTok, owned by the Chinese company ByteDance, also criticized the fee system. Their lawyer, Bill Batchelor, said the way the fee was calculated was not fair or reasonable. He argued that the EU used incorrect numbers and treated companies differently. “The fee is too high because it counts some users twice and makes TikTok pay for other platforms as well,” he said. He also said the EU went beyond its legal power by setting the fee based on the profits of the entire company group instead of just the part operating in Europe.
The European Commission, which is defending the fee system, disagreed with these claims. Their lawyer, Lorna Armati, said the companies had enough information to understand how the fee was calculated. She explained that when a company has combined financial records, the fee should be based on the whole group’s profits, not just one part. “The money available to pay the fee comes from the entire company, not just one branch,” she said. She also denied that the companies were treated unfairly or that their rights were ignored.
The court will now review the arguments and make a decision next year. The outcome could affect how big tech companies are regulated in the EU. If Meta and TikTok win, the EU might have to change how it calculates these fees. But if the court sides with the European Commission, the current system will stay in place.
This case is part of a bigger effort by the EU to control the power of big tech companies. The Digital Services Act is designed to make sure these companies follow strict rules on content moderation, user privacy, and competition. By charging these fees, the EU aims to cover the cost of enforcing these rules.
Both Meta and TikTok have been under increasing scrutiny in Europe. Meta has faced fines over data privacy issues, while TikTok has been questioned about its ties to China and how it handles user data. This legal battle over fees is another chapter in the ongoing struggle between tech giants and regulators.
The final decision will be important not just for these companies but for other tech firms as well. If the court agrees that the fee system is unfair, more companies might challenge it. On the other hand, if the EU wins, it could strengthen its ability to regulate big tech in the future.
For now, both sides will have to wait for the court’s ruling. The judges will carefully examine whether the fee calculation method follows the law and whether the companies were treated fairly. Whatever the outcome, this case shows how complicated it can be to regulate global tech companies in a way that is fair for everyone.
As the debate continues, one thing is clear: the relationship between big tech and governments will remain a hot topic. Companies want clear and fair rules, while regulators want to make sure they have the power to keep these companies in check. The court’s decision next year could shape how this balance is maintained in the years to come.
This case also highlights the challenges of making laws that apply to huge international companies. Different countries have different rules, and companies often operate in many places at once. Finding a system that works for everyone is not easy, but cases like this one help define what fairness looks like in the digital age.
In the end, the goal is to create a system where tech companies can grow and innovate while still following rules that protect users and ensure fair competition. Whether the current fee system achieves that goal is what the court will decide. Until then, the debate over how to regulate big tech will continue, with companies and governments trying to find the right balance.
