Meta and TikTok Win Legal Challenge Over EU Supervisory Fees

09/10/25
Source: Social Media Today – Latest News by Andrew Hutchinson. Read the original article

TL;DR Summary of EU Court Rules Against Digital Services Act Supervisory Fee for Meta and TikTok

The EU court sided with Meta and TikTok, ruling that the European Commission’s supervisory fee under the Digital Services Act (DSA) was calculated using an improper methodology. The fee, based on a platform’s revenue rather than actual regulatory workload, was challenged as unfair and flawed. The court’s decision forces the EU Commission to devise a new, more appropriate calculation method, offering a small but notable victory for major social media platforms facing heavy EU regulatory costs.

Optimixed’s Overview: EU Court Decision Prompts Revision of Digital Services Act Fee Structure

Background on the EU Digital Services Act Supervisory Fee

The EU Commission introduced a supervisory fee aimed at large tech platforms to finance enforcement of the Digital Services Act (DSA). This fee was set at 0.05% of a platform’s annual worldwide net income, with the rationale that platforms generating more revenue should contribute more to regulatory oversight costs.

Issues with the Fee Calculation Methodology

  • The fee was linked to revenue rather than the actual regulatory workload each platform generates.
  • Platforms with high user numbers but financial losses could avoid paying the fee despite generating significant supervisory demands.
  • The methodology for calculating active users, a key input, was adopted incorrectly within the EU regulatory framework, violating procedural rules.

The Court’s Ruling and Its Implications

The Luxembourg-based General Court ruled that the European Commission’s approach to determining the supervisory fee was flawed because the methodology should have been established through a delegated act rather than implementing decisions. This procedural misstep invalidated the fee’s calculation for 2023.

As a result, the EU Commission must develop a new mechanism for calculating supervisory fees that better aligns costs with actual regulatory workload and complies with the DSA’s procedural requirements.

Significance for Social Media Platforms and Regulatory Landscape

  • This decision represents a minor but important win for Meta and TikTok amid extensive EU regulatory pressures and multi-billion dollar fines.
  • Meta has actively sought support from the U.S. government to push back against EU regulations viewed as disproportionately targeting its business.
  • The ruling highlights ongoing tensions between major social platforms and EU authorities over fair and enforceable regulatory frameworks.