Finance
Meta and TikTok challenge tech fees in second highest EU court
Published by Global Banking & Finance Review®
Posted on June 11, 2025
3 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 11, 2025
3 min readLast updated: January 23, 2026
Meta and TikTok contest EU's tech fees, citing flawed calculations under the Digital Services Act. The court's decision is anticipated next year.
By Foo Yun Chee
LUXEMBOURG (Reuters) -Meta Platforms and TikTok said a European Union supervisory fee levied on them was disproportionate and based on a flawed methodology as they took their fight with tech regulators to Europe's second highest court on Wednesday.
Under the Digital Services Act that became law in 2022, the two companies and 16 others are subject to a supervisory fee amounting to 0.05% of their annual worldwide net income aimed at covering the European Commission's cost of monitoring their compliance with the law.
The size of the annual fee is based on the number of average monthly active users for each company and whether the company posts a profit or loss in the preceding financial year.
Meta told judges at the General Court it was not trying to avoid paying its fair share of the fee, but it questioned how the Commission had calculated the levy, saying it had been based on the revenue of the group rather than of the subsidiary.
Meta's lawyer Assimakis Komninos told the panel of five judges the company still did not know how the fee was calculated.
He said the provisions in the Digital Services Act, or DSA, "go against the letter and the spirit of the law, are totally untransparent with black boxes and have led to completely implausible and absurd results".
ByteDance-owned Chinese online social media platform TikTok was equally critical.
"What has happened here is anything but fair or proportionate. The fee has used inaccurate figures and discriminatory methods," TikTok lawyer Bill Batchelor told the court.
"It inflates TikTok's fees, requires it to pay, not just for itself, but for other platforms and disregards the excessive fee cap," he said.
He accused the Commission of double counting the companies' users, saying this was discriminatory because users switching between their mobile phones and laptops would then be counted twice.
He also said regulators had exceeded their legal power by setting the fee cap at the level of group profits.
Commission lawyer Lorna Armati rejected both companies' arguments and defended the Commission's use of group profit as a reference value to calculate the supervisory fee.
"When a group has consolidated accounts, it is the financial resources of the group as a whole that are available to that provider in order to bear the burden of the fee," she told the court.
"The providers had sufficient information to understand why and how the Commission used the numbers that it did and there is no question of any breach of their right to be heard now, unequal treatment," she said.
The Court is expected to issue its ruling next year.
The cases are T-55/24 Meta Platforms Ireland v Commission and T-58/24 TikTok Technology v Commission.
(Reporting by Foo Yun Chee; editing by Barbara Lewis)
The supervisory fee is based on 0.05% of the companies' annual worldwide net income, determined by the number of average monthly active users and whether the company posted a profit or loss in the preceding financial year.
Meta argues that the fee calculation is flawed and lacks transparency, claiming that it is based on inaccurate revenue figures and does not reflect the actual financial situation of the company.
TikTok criticizes the fee as unfair and disproportionate, stating that it uses inaccurate figures and double counts users, which inflates the fees they are required to pay.
The Commission's lawyer defended the fee calculation, stating that it is based on the financial resources of the group as a whole and that the providers had sufficient information to understand the methodology used.
The Court is expected to issue its ruling next year, with the cases being T-55/24 Meta Platforms Ireland v Commission and T-58/24 TikTok Technology v Commission.
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