Meta, designated as a Very Large Online Platform (VLOP) by the European Commission, has filed a legal complaint against the supervisory fee mandated by the Digital Services Act (DSA). The complaint, lodged at the General Court in Luxembourg, contests the requirement for VLOPs to pay a fee amounting to 0.05% of their annual worldwide net income to finance regulators’ monitoring costs for ensuring compliance with DSA rules.
Dispute Over Fee Calculation Methodology
A Meta spokesperson stated that while the company has implemented measures to comply with the DSA, it disagrees with the methodology used to calculate the supervisory fees. The spokesperson highlighted concerns regarding the current approach, which exempts companies recording a loss from paying fees, potentially placing an uneven financial burden on compliant companies. Meta argues that this arrangement may lead to certain companies paying nothing, while others bear a disproportionate share of the total fees.
Previous Challenges to VLOP Designation
Meta’s legal challenge follows previous disputes over VLOP designation, with e-commerce giant Amazon and German retailer Zalando contesting their classification as VLOPs. The DSA, which came into effect in August, applies to the largest 22 platforms, including YouTube, Booking.com, and Facebook. These platforms are subject to specific obligations such as transparency requirements and safeguards for minors online. However, as of February 17, general obligations under the DSA will extend to other platforms with fewer users.
Impact of DSA on Digital Platforms
The DSA represents a significant overhaul of digital regulations within the EU, aiming to enhance transparency, accountability, and user protection online. By imposing supervisory fees on VLOPs, the legislation seeks to ensure effective monitoring and enforcement of DSA compliance. However, Meta’s legal challenge underscores ongoing debates surrounding the implementation and fairness of regulatory measures in the digital sphere.
Legal Proceedings and Regulatory Compliance
Meta’s legal complaint signals the beginning of a potentially protracted legal battle over DSA provisions and their implications for online platforms operating within the EU. As the digital landscape continues to evolve, balancing regulatory requirements with innovation and competitiveness remains a key challenge for both policymakers and industry stakeholders.
SOURCE: Ref Image from HT Tech
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