LONDON, May 7 (Reuters) - Facebook and Instagram owner Meta is bringing a legal challenge against Britain's media regulator Ofcom over how fees and penalties are calculated under the government's Online Safety Act, London's High Court heard on Thursday.
An Ofcom spokesperson said in a statement that fees and penalties under the law are based on a provider's qualifying worldwide revenue.
"Disappointingly, Meta are objecting to the payment of fees, and any penalties that could be levied on companies
in future, that are calculated on this basis," Ofcom said.
A Meta spokesperson said in a statement that "we and others in the tech industry believe (Ofcom's) decisions on the methodology to calculate fees and potential fines are disproportionate".
"We believe fees and penalties should be based on the services being regulated in the countries they're being regulated in," they added. "This would still allow Ofcom to impose the largest fines in UK corporate history."
Britain's 2023 Online Safety Act sets tougher standards for social media platforms such as Facebook, allowing Ofcom to fine companies up to 10% of qualifying global revenue.
The law also requires Ofcom to recover the costs of running the regime through fees charged to service providers.
Ofcom's lawyer Javan Herberg told the High Court that Ofcom "intends to issue invoices (for fees) in Q3 of this year, most likely September", and could have to pay refunds if Meta's challenge succeeds.
(Reporting by Sam Tobin. Editing by Paul Sandle and Mark Potter)
