Meta Platforms and TikTok won an European Commission court case as reported by Reuters. The lawsuit was about the supervisory fee and its calculation under the Digital Services Act (DSA). The Luxembourg-based General Court ruled that the Commission used the wrong legal mechanism when setting the fees. Thus, saying the methodology should have been adopted through a delegated act rather than an implementing decision.
Despite the ruling, the court confirmed that the fees collected for 2023 will not be refunded. Instead, the European Commission has been given 12 months to correct the calculation process and adopt the proper legal framework. Both Meta and TikTok were charged 0.05% of their global net income as part of the EU’s monitoring costs. The companies argued the system was unfair since firms reporting losses were exempt, even if they had a significant user base.
The European Commission welcomed the judgment, noting it validated the principle of supervisory fees while requiring only a procedural correction. A spokesperson said a delegated act would be introduced within a year. TikTok expressed satisfaction with the outcome and promised to monitor future developments, while Meta highlighted the need to fix flaws in the current system.
The decision is a key moment in the EU’s enforcement of the DSA. While companies will continue paying supervisory fees, the ruling signals growing judicial scrutiny over how such regulations are implemented. The reformulated framework could reshape how Big Tech contributes to the EU’s digital oversight in the future.
Also Read: Elon Musk's xAI Signs EU's AI Code of Practice, But There's a Catch