Meta platforms and TikTok have challenged the European Union court (The Second Highest Court In Europe) over supervisory fees under the Digital Service Act (DSA) stating that it is unfair and improperly calculated.
According to the recent statistics analyzed by Tech Detour TikTok is one of the most popular app worldwide with 1.5 billion active users monthly and on the other side Meta with facebook, Instagram and WhatsApp on 2nd number with 3.98 billion monthly combined active users worldwide.
Legal Battle Background
The Digital Service Act (DSA) was passed in November 2022 its goal was to synchronize Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs). Under the Act, the two companies and 16 others were subjected to an annual levy of 0.05% of their Annual Global Net income to cover European commission costs.
Meta’s Legal Statement
Meta lawyer Assimakis Komninos told the Judges that it was not trying to avoid paying its fair share of the fee but questioned how it had been calculated. It said that the total had been based on the revenue of the group rather than of a subsidiary and led to quote implausible and absurd results.
He said that the company still lacked clarity on how the fee had been calculated and called the process “untransparent and with black boxes”.
TikToks Legal Stand
TikTok filed their case alongside Meta. Equally critical TikTok said the fee used quote inaccurate figures and discriminatory methods declaring it unfair and not in line with the legal caps.
Commissions Argument & Next Hearing
The commission argued that both companies had insufficient information following the fee figures and the commission defended its calculations and declared that no rights were violated.
The next General Court hearing is expected to be next year to give a conclusion to these cases, the cases are T-55/24 Meta Platforms Ireland v Commission and T-58/24 TikTok Technology v Commission.
