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Meta challenges EU's Digital Services Act supervisory fee as unfair

Startup News FYI

Startup News FYI · 1y ago

Meta challenges EU's Digital Services Act supervisory fee as unfair

Social media giant Meta is challenging the European Union's supervisory fee under the Digital Services Act (DSA). The DSA allows the EU to charge very large online platforms to fund oversight of their businesses. Meta argues that the fee calculation mechanism is unfair, as companies that report a loss are exempt from paying, even if they have a large user base. The EU defends its methodology, stating that the fee should be proportionate to a provider's economic capacity. Meta's legal challenge is being brought to the EU's General Court.

Related News

TikTok challenges EU supervisory fee, following Meta's footsteps

Economic Times

Economic Times · 1y ago

TikTok challenges EU supervisory fee, following Meta's footsteps

Chinese social media platform TikTok is contesting an EU supervisory fee that covers regulators' monitoring costs under new EU rules. The fee, which is 0.05% of TikTok's annual worldwide net income, was challenged by Meta Platforms as well. As part of the Digital Services Act, 20 large online platforms, including TikTok and Meta, are required to pay the fee based on their average monthly active users and financial performance. TikTok is appealing the fee, citing concerns about flawed user number estimates. The European Commission plans to defend its position in court.

EU signals doubts over legality of Meta's privacy fee

TechCrunch · 1y ago

EU signals doubts over legality of Meta's privacy fee

The European Union has expressed doubts over Meta's controversial privacy fee, saying it is unlikely to comply with the bloc's digital governance and competition rules. Margrethe Vestager, the EU's digital EVP and competition chief, stated that there are multiple ways to monetise services and that Meta's tactic of offering a subscription or consent to tracking would need to be assessed for compliance with the Digital Markets Act. This signals that tech giants will need to follow both the letter and spirit of the law, as the EU aims to reduce their dominance and unfair practices.

Germany wants Big Tech to pay towards compliance costs of new digital law

Economic Times

Economic Times · 1y ago

Germany wants Big Tech to pay towards compliance costs of new digital law

Germany is urging Big Tech companies like Alphabet, Amazon, Apple, ByteDance, Meta Platforms, and Microsoft to contribute to the compliance costs of new EU regulations designed to limit their influence. The Digital Markets Act (DMA) requires these companies to comply with a set of rules by March 7. The proposed financing model for these costs would be similar to that of the Digital Services Act (DSA), where large online platforms pay a supervisory fee based on their annual worldwide net income. Additionally, Germany suggests EU antitrust enforcers prioritize key sectors with international significance to enhance European competitiveness.

Apple updates the rules for its EU App Store by adding more complicated fees | TechCrunch

TechCrunch · 1m ago

Apple updates the rules for its EU App Store by adding more complicated fees | TechCrunch

Apple updated its EU App Store policies to comply with the EU's Digital Markets Act (DMA), introducing developer communication flexibility and a new fee structure. Developers can now link to alternative payment methods outside the App Store. Instead of dropping the Core Technology Fee (CTF), Apple introduced complex fees: an initial acquisition fee and a tiered store services fee. Reactions include criticism from Epic Games' CEO Tim Sweeney, who calls Apple’s changes "malicious compliance."

Apple, Meta likely to face modest fines over DMA breaches, sources say

Economic Times

Economic Times · 4m ago

Apple, Meta likely to face modest fines over DMA breaches, sources say

Apple and Meta face modest fines for allegedly breaching the EU's Digital Markets Act (DMA), aimed at curbing tech giants' power. The act, effective since May 2023, is designed to foster competition among online services. The EU antitrust enforcer's priority is compliance over sanctions, considering the DMA's recent implementation and geopolitical factors. Despite efforts to adhere to regulations, both companies highlight challenges with demands exceeding legal requirements. Final decision on fines is pending.

Meta and TikTok challenge tech fees in second highest EU court

Economic Times

Economic Times · 1m ago

Meta and TikTok challenge tech fees in second highest EU court

Meta and TikTok are contesting EU supervisory fees under the Digital Services Act, claiming the fees are disproportionate and based on flawed calculations. Meta argues the fees are based on group rather than subsidiary revenue, while TikTok criticizes the method for using inaccurate figures and discrimination. The EU Commission defends its methodology, stating it used group profits as a reference. The ruling from Europe’s second-highest court is expected next year.

Apple wants to know what developers really think about its App Store changes. It may regret asking.

Business Insider

Business Insider · 1y ago

Apple wants to know what developers really think about its App Store changes. It may regret asking.

Apple is offering 30-minute online consultations to developers seeking feedback on recent changes made to its App Store. The changes were made to comply with the EU's Digital Markets Act, which deemed the App Store unfair in terms of its commission fees and restrictions on alternative app stores. The consultations come as developers express frustration over the costs associated with using third-party app stores and the new "core technology fee" imposed by Apple. App developers hope that Apple will listen to their feedback and make necessary changes.

Meta says will appeal 'unlawful' EU fine - The Economic Times

Economic Times

Economic Times · 1m ago

Meta says will appeal 'unlawful' EU fine - The Economic Times

Meta plans to appeal a 200-million-euro fine imposed by the EU, which alleges Meta violated digital competition rules with its "pay or consent" system that uses personal data on Facebook and Instagram. The EU's April decision claimed the system did not offer a non-personalized option, breaching the Digital Markets Act. Meta argues the ruling is incorrect, citing a 2023 EU court judgment supporting subscription models as valid user choices.

Facebook, YouTube and TikTok users in Europe get forum to challenge social media content decisions

Economic Times

Economic Times · 10m ago

Facebook, YouTube and TikTok users in Europe get forum to challenge social media content decisions

- Appeals Center Europe certified as a dispute settlement body for content moderation disputes in the European Union - Similar to Meta's Oversight Board, it will act as a referee for cases involving Facebook, YouTube, and TikTok - Required under the EU's Digital Services Act for tech companies and social media platforms to work with dispute settlement bodies and comply with their decisions - Users in the EU can appeal decisions related to violence, hate speech, bullying, and more - Appeals Center will handle every case it receives, unlike the Oversight Board which can cherry-pick cases - Funding for the Appeals Center provided by Meta's Oversight Board, with a startup fee of 95 euros for tech companies and a 5 euro fee for users raising disputes

Meta should offer free alternative options, EU's Breton says

Economic Times

Economic Times · 1y ago

Meta should offer free alternative options, EU's Breton says

EU industry chief, Thierry Breton, has stated that Meta Platforms should provide free alternative options instead of introducing new fees to comply with the EU's Digital Markets Act. In response to criticism from rivals and users, Meta launched a no-ads subscription service in Europe last November.

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