Meta And Tiktok Sue To Get Out Of Paying The EU's Fee For Policing Content
Arthur T Knackerbracket has processed the following story:
Meta and TikTok owner ByteDance are not keen on the idea of paying the European Union to regulate them. The companies have challenged a supervisory fee set forth by EU moderators, who are now required to monitor Meta, TikTok, and other major platforms under the Digital Services Act (DSA), Politico reports. Meta first announced its action, with ByteDance following suit a day later.
Under the current arrangement, all designated companies must split the 45.2 million ($48.7 million) that EU's regulators argue is necessary to properly supervise the 20 Very Large Online Platforms and two Very Large Online Search Engines (VLOSEs). Each regulated platform has 45 million or more users with its financial contribution based on the size of that number. They also can't owe more than 0.05 percent of its 2022 net profits. However, companies like Amazon and Pinterest that reported little to no profits won't owe anything. Meta, on the other hand, got a 11 million ($11.9 million) bill under the current arrangement. ByteDance has not publicly announced how much it owes.
Meta takes issue with the European Union regulators' methodology for choosing each company's fees. "Currently, companies that record a loss don't have to pay, even if they have a large user base or represent a greater regulatory burden, which means some companies pay nothing, leaving others to pay a disproportionate amount of the total," a Meta spokesperson remarked. Failure to comply with the fee could lead to a fine of up to six percent of a company's global revenue.
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