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Meta challenges EU’s Digital Services Act supervisory fee as unfair

Meta is challenging a fee levied by the European Union on larger online platforms under its rebooted ecommerce rules. While a number of tech giants have Meta is challenging a fee levied by the European Union on larger online platforms under its rebooted ecommerce rules.

But of course it won’t be drawn into commenting on the effect of any ‘creative accountancy’, channel stuffing, tax planning or other tactics tech giants might deploy to avoid turning a profit on paper (and not have to pay this fee). Meta’s legal challenge is focused on this component of how the supervisory fee is calculated, with the tech giant arguing the mechanism is unfair since some companies with a lot of users but which report a loss do not have to pay. This is because the purpose of fee is not to punish the VLOPs and have a deterrence effect (as it is for the fines, which are capped taking into account revenues), but for the regulated entities to contribute to the monitoring and enforcement without affecting their business operations and expenditure related to compliance.

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