Meta and TikTok Challenge DSA Fees in EU Court
Meta and TikTok have taken legal action against the European Union, arguing that the supervisory DSA fees imposed under the Digital Services Act (DSA) are unjust, disproportionate, and based on flawed methods.
DSA Fee and How They Work
The DSA, enacted in 2022, aims to regulate very large online platforms and search engines to ensure a safer digital space. Under the law, 18 major tech companies—including Meta, TikTok, Google, and Amazon—must pay a supervisory fee of up to 0.05% of global net income.
Fee calculations depend on:
- Average monthly EU users
- Profit or loss of the prior financial year
Full explanation: Article 43 of the DSA
DSA Fee Criticized for Lack of Transparency
Meta’s legal counsel, Assimakis Komninos, stated that the European Commission relied on group-wide revenue rather than subsidiary-specific data, describing the fee methodology as “totally untransparent.”
TikTok’s lawyer, Bill Batchelor, claimed that:
- Data was miscalculated (e.g., double-counting multi-device users)
- The fee was inflated by referencing group profits
- TikTok was unfairly paying for the regulation of other platforms
Sources:
Commission Defends DSA Fee Process
Lorna Armati, representing the European Commission, defended the fee model, stating that group-level financials are valid when consolidated accounts are used.
“It is the financial resources of the group as a whole that are available to bear the burden,” said Armati.
She argued that all regulated entities were given enough data to understand the calculations.
What This Case Means for DSA Fees
The ruling could reshape how DSA fees are calculated and imposed. A favorable verdict for Meta and TikTok may prompt a revision of the methodology, potentially easing the financial impact on other platforms.
The case is expected to be decided by 2026, and is officially listed as:
- T-55/24: Meta Platforms Ireland v Commission
- T-58/24: TikTok Technology v Commission
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