Meta brings High Court challenge over Ofcom fees

Meta, the parent company of Facebook and Instagram, has launched a High Court challenge against the UK media regulator Ofcom over fees and potential fines introduced under the Online Safety Act. The law, which came into force in July 2025, aims to protect users from harmful online content, with Ofcom's operating costs funded by tech firms. The fees, introduced in September, are based on a company's qualifying worldwide revenue and apply to firms earning more than £250m a year.

Meta argues that Ofcom's methods for calculating fees and penalties are 'disproportionate'. The company is challenging rules covering search engines and platforms where users can share content, including social media sites. Lawyers acting for Meta claim that the regulations are unlawful and should be reconsidered by the regulator.

Monica Carss-Frisk KC, representing Meta, said in court documents that Ofcom's approach is 'troubling' and leads to 'a handful of companies, such as Meta, bearing the vast majority of Ofcom's costs, despite the act making clear that it is concerned with a wide range of internet services offered in the UK'. She also argued that the calculation of qualifying worldwide revenue is not linked specifically to earnings from UK services. Under the Online Safety Act, companies found to have breached safety rules can face fines of up to 10% of qualifying worldwide revenue or £18m, whichever is greater.

Meta is also disputing how penalties are calculated when multiple companies owned by the same parent organisation are found jointly liable for breaches. A preliminary hearing in London on Thursday heard that Fortnite-maker Epic Games and the trade body the Computer and Communications Industry Association are expected to seek permission to intervene in the case. An Ofcom spokesperson said the regulator had based its approach on 'a plain reading of the law'.

'Disappointingly, Meta are objecting to the payment of fees, and any penalties that could be levied on companies in future, that are calculated on this basis,' the spokesperson said. A Meta spokesperson said the firm remains 'committed to co-operating constructively with Ofcom as it enforces the Online Safety Act'. The spokesperson suggested that penalties should instead be based on the revenues generated by the services being regulated in the countries where they operate.

The High Court has confirmed that the next hearing will take place in June, with Mr Justice Chamberlain noting that the dispute raises issues 'of wide public importance'. This challenge comes after Wikipedia lost its own legal challenge against the Online Safety Act last August over age verification requirements.