What's Happening?
Meta Platforms and TikTok have successfully challenged the EU's methodology for calculating supervisory fees under the Digital Services Act. The Luxembourg-based General Court ruled that the fee calculation should be based on a delegated act rather than implementing decisions. This decision requires EU regulators to reformulate the fee methodology within 12 months. The court's ruling does not mandate repayment of fees already paid by the companies, but it does require a procedural correction.
Why It's Important?
The court's decision highlights the complexities of regulatory compliance for large tech companies operating in the EU. The ruling may lead to changes in how fees are calculated, potentially affecting the financial obligations of companies like Meta and TikTok. This could influence the operational costs and strategic decisions of these companies in the European market. The case underscores the ongoing tension between tech giants and regulatory bodies, as they navigate compliance with new digital regulations.
What's Next?
EU regulators have 12 months to adopt a new legal basis for the fee calculation methodology. This process will involve consultations and potential adjustments to the Digital Services Act's implementation. Companies affected by the fee, including Meta and TikTok, will closely monitor these developments to assess their future financial obligations. The outcome may also impact other large online platforms required to pay supervisory fees under the DSA.
