{"id":4844,"date":"2025-06-12T06:02:36","date_gmt":"2025-06-12T06:02:36","guid":{"rendered":"https:\/\/prepsaret.com\/news\/?p=4844"},"modified":"2025-06-12T06:02:36","modified_gmt":"2025-06-12T06:02:36","slug":"meta-and-tiktok-challenge-eu-fee-in-court-over-transparency-concerns","status":"publish","type":"post","link":"https:\/\/prepsaret.com\/news\/meta-and-tiktok-challenge-eu-fee-in-court-over-transparency-concerns\/","title":{"rendered":"Meta and TikTok Challenge EU Fee in Court Over Transparency Concerns"},"content":{"rendered":"

Meta Platforms and TikTok appeared before Europe’s General Court on Wednesday to contest a supervisory charge imposed by the European Union, claiming the calculation process was flawed and the resulting amounts unfair.\u00a0<\/span><\/p>\n

Both tech companies argued that the European Commission\u2019s approach lacked clarity and relied on inaccurate data.<\/span><\/p>\n

The dispute centers around the <\/span>Digital Services Act (DSA)<\/span><\/a>, enacted in 2022, which obligates major online platforms to contribute a supervisory fee.\u00a0<\/span><\/p>\n

This annual levy, equivalent to 0.05% of each company’s global net income, is intended to offset the Commission’s expenses in overseeing compliance with the DSA.\u00a0<\/span><\/p>\n

The fee amount is determined by the platform\u2019s number of average monthly active users and its profit or loss status in the previous fiscal year.<\/span><\/p>\n

Related story<\/b>: <\/span>OpenAI Strikes Unlikely Cloud Partnership with Google Amid Ongoing AI Competition, Sources Reveal<\/span><\/a><\/p>\n

Concerns Over Calculation Methods<\/b><\/h2>\n

During the court session, Meta\u2019s representative, Assimakis Komninos, emphasized that the company was not refusing to pay its portion but took issue with how the Commission had worked out the figures.\u00a0<\/span><\/p>\n

According to Komninos, the fee was based on the earnings of Meta\u2019s parent company rather than those of its subsidiary, raising serious concerns about fairness and legality.\u00a0<\/span><\/p>\n

\u201cThe provisions in the Digital Services Act, or DSA, go against the letter and the spirit of the law, are totally untransparent with black boxes and have led to completely implausible and absurd results,\u201d he stated.<\/span><\/p>\n

Similarly, TikTok voiced frustration with the process. The company\u2019s lawyer, Bill Batchelor, argued that the fee was neither fair nor balanced. \u201cWhat has happened here is anything but fair or proportionate.\u00a0<\/span><\/p>\n

The fee has used inaccurate figures and discriminatory methods,\u201d Batchelor told the panel. He also criticized the Commission for effectively forcing <\/span>TikTok<\/span><\/a> to pay for other companies, inflating its own costs, and for applying an excessive cap based on group profits.<\/span><\/p>\n

Batchelor further accused regulators of counting users multiple times if they switched between devices, which he claimed unfairly increased TikTok\u2019s user numbers and, by extension, its fee.<\/span><\/p>\n

In response, Commission lawyer Lorna Armati defended the methodology, asserting that using consolidated group profits was appropriate because those resources are available to the entire group.\u00a0<\/span><\/p>\n

\u201cThe providers had sufficient information to understand why and how the Commission used the numbers that it did and there is no question of any breach of their right to be heard now, unequal treatment,\u201d she said.<\/span><\/p>\n

A verdict from the General Court is expected sometime next year.<\/span><\/p>\n

Read next: <\/b>Tesla Plans Public Robotaxi Service Launch in Austin on June 22<\/span><\/a><\/p>\n

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Access premium study materials, realistic practice tests, and professional guidance tailored to help you excel on exam day and advance your professional future!<\/span><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Meta Platforms and TikTok appeared before Europe’s General Court on Wednesday to contest a supervisory charge imposed by the European Union, claiming the calculation process was flawed and the resulting amounts unfair.\u00a0 Both tech companies argued that the European Commission\u2019s approach lacked clarity and relied on inaccurate data. The dispute centers around the Digital Services […]<\/p>\n","protected":false},"author":5,"featured_media":4846,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[330],"tags":[],"class_list":["post-4844","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nMeta and TikTok Challenge EU Fee in Court Over Transparency Concerns<\/title>\n<meta name=\"description\" content=\"Meta and TikTok head to EU court, disputing a supervisory fee and calling out transparency and fairness issues in tech regulation.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/prepsaret.com\/news\/meta-and-tiktok-challenge-eu-fee-in-court-over-transparency-concerns\/\" \/>\n<meta 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