The European Union’s General Court temporarily blocked supervisory fees imposed on Meta and TikTok under the Digital Services Act (DSA). The delay spotlights the law’s implementation and the EU’s oversight of Big Tech platforms, specifically regarding DSA supervisory fees.
What’s Happening & Why This Matters
The DSA, which came into force in 2023, introduced strict oversight rules for the largest online platforms. These Very Large Online Platforms (VLOPs) — services with over 45 million monthly active users — must pay annual supervisory fees. These fees fund the European Commission’s administrative and enforcement activities.
The current system calculates fees using a formula tied to each platform’s global profits, capped at 0.05% of worldwide revenue. In 2023, platforms like Facebook, Instagram, and TikTok were billed based on this model, collectively charging a total of €58.2 million. However, these fees covered only part of the Commission’s expenses, leaving a €514,061 shortfall.
Meta and TikTok challenged the fee structure, arguing the Commission’s methodology for calculating user counts lacked proper legal authority. The court agreed, ruling that the methodology is a “critical and indispensable element” and should have been adopted through a delegated act rather than in implementing decisions.
As a result, the court annulled the current decisions but allowed them to remain in effect temporarily. The EU Commission now has 12 months to revise the methodology and issue updated decisions in compliance with the DSA, directly affecting DSA supervisory fees.
The Commission maintains its position that the current calculations are sound. In a statement, officials said there were “no errors in calculation, no suspension of payments, and no issue with the principle or amount of the fees.” Meta, TikTok, and other affected companies are still required to pay the 2023 supervisory fees despite the legal challenge.
Broader Implications for Big Tech Oversight
This ruling adds complexity to the DSA’s enforcement. The law was designed to create accountability for platforms hosting vast amounts of content and personal data. By temporarily halting the fee structure, the decision highlights the legal and procedural hurdles in regulating global tech giants.
For Meta and TikTok, this pause represents a small victory but not a permanent relief. Both companies must continue complying with the DSA’s strict content moderation and transparency rules while preparing for a potentially revised fee system that involves DSA supervisory fees.
For the European Commission, the ruling serves as a wake-up call to refine its processes. The Commission will need to create a clearer, legally compliant methodology for the calculation of DSA supervisory fees to avoid future disputes and ensure consistent funding for DSA enforcement.
TF Summary: What’s Next
The EU court’s ruling provides a temporary reprieve for Meta, TikTok, and other large platforms, but the broader battle over Big Tech regulation in Europe is far from over. The Commission must deliver a revised methodology within a year, shaping the future of how these supervisory fees are calculated under the DSA.
MY FORECAST: As DSA rolls out, expect further clashes between regulators and platforms over compliance costs, privacy standards, and free speech responsibilities. The fee structure influences not only Europe but also global discussions on regulation.
— Text-to-Speech (TTS) provided by gspeech