Meta challenges Ofcom in High Court over Online Safety Act fee and fine calculations

Mixed · 2The English High Court began hearing a judicial review brought by Meta, which owns Facebook and Instagram, against Ofcom on Tuesday 13 October; City A.M. says the hearing runs on Tuesday and Wednesday. 1 2 Mixed · 2Meta challenges how Ofcom defines "qualifying worldwide revenue" (QWR), which is used to calculate fees and potential fines for tech firms earning more than £250m a year under the Online Safety Act. 2 1 Centre · 1Firms found to have breached the safety rules can face fines of up to 10% of qualifying worldwide revenue or £18m, whichever is greater. Ofcom's online safety costs are funded by tech firms through fees, under regulations introduced in September 2025. 1

Right · 1According to City A.M., if Ofcom enforces against a single entity, penalties are based only on that entity's revenue. If it enforces against several entities, including a parent and subsidiaries, it can use the group's total revenue, including non-regulated activities such as enterprise software. 2 Right · 1In court filings seen by City A.M., Meta alleges the Act gives Ofcom no power to include revenue from non-regulated services when pursuing multiple entities. It says Ofcom is therefore breaching its statutory powers and "acting irrationally" through a "double counting" approach, and that Ofcom chose the "broadest possible approach" to enable penalties "at an unprecedented level of magnitude". 2 Centre · 1Meta's counsel, Monica Carss-Frisk KC, said in court documents that the approach is "troubling" and leads to "a handful of companies such as Meta bearing the vast majority of Ofcom's costs", although the Act is concerned with a wide range of internet services offered in the UK. 1

Right · 1A Meta spokesperson said the company is "committed to cooperating constructively with Ofcom" but believes the methodology is disproportionate, and that fees and penalties should be based on the services regulated in the countries where they are regulated, which would still allow "the largest fines in UK corporate history". 2 Mixed · 2Ofcom says Meta "is incorrect" and that it "struck a careful balance". It argues the QWR Regulations set only the methodology for the maximum penalty, not the level of any penalty, which Ofcom will decide as appropriate and proportionate case by case. It says it will defend legal challenges robustly. 2 1 Mixed · 2Ofcom's group director for online safety, Oliver Griffiths, told the House of Lords Communications and Digital Committee that the regulator is "operating in a highly litigious environment", facing two sets of proceedings from Meta and judicial reviews from other services over its data collection. The BBC reported in May that Meta's lawyers argued the regulations should be reconsidered. 2 1