Meta will challenge in court an EU demand for fees. (REUTERS)News 

Meta Platforms contests EU’s fees for content moderation law

Meta, the owner of Facebook, revealed on Wednesday its intention to legally contest the European Union’s request for fees related to a content moderation law.

Last year, the European Commission put Meta on Facebook and Instagram’s list of “very large” online platforms to face tougher rules under the new Digital Services Act (DSA).

Companies on the list must pay fees to the Commission, the EU’s executive body, for the implementation of the DSA’s gaming fund.

Meta supported the DSA’s goals and had implemented measures to comply, “but we disagree with the methodology used to calculate these fees,” a company spokesman said.

“Currently, loss-making companies don’t have to pay, even if they have a large user base or have a higher regulatory burden, meaning some companies pay nothing and others have to pay a disproportionate amount.” the spokesman said in a statement.

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The landmark DSA law requires platforms to step up efforts to combat illegal and harmful content, including the spread of disinformation. It also requires them to do more to protect online consumers from fraud.

It is part of the EU’s strengthened legal arsenal to rein in Big Tech, along with another law aimed at curbing the dominance of the world’s biggest tech companies.

The commission considers platforms with at least 45 million active monthly users in the European Union, equivalent to 10 percent of the bloc’s total population, to be “very large.”

The DSA Act came into effect last year for larger companies, but all companies must comply by February 17 this year.

The commission declined to comment directly on Meta, but a spokesperson said: “Companies have the right to appeal. Our decisions and methods are robust. We will defend our position in court.”

The fees were due on December 31, 2023, and the committee’s spokesperson confirmed that all companies had paid.

The fee is calculated “proportionately to the size of the service” and does not exceed “a general cap (0.05 percent of annual global net revenue) for each service provider,” the spokesperson added.

Meta is not the only one taking their complaints with DSA to court.

Online retailers Amazon and Zalando are also on the EU list, but are challenging their designation.

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