Meta has filed for judicial review in UK High Court challenging how Ofcom calculates fees and penalties under the Online Safety Act. The social media giant argues the regulator's methodology is fundamentally flawed because it bases fines on global revenue rather than UK-specific income from regulated services.
The Online Safety Act permits Ofcom to fine companies up to 10 percent of their qualifying worldwide revenue or £18 million, whichever is higher. For Meta, which generated approximately $201 billion in revenue last year, this formula could result in penalties reaching billions of pounds. The company contends this approach is disproportionate and should be revised to reflect only UK operations.
Meta's legal challenge raises three specific objections to Ofcom's calculation method. First, the company argues that only UK revenue tied directly to regulated services should count toward penalty calculations. Second, Meta objects to rules treating multiple services under one corporate structure as jointly liable, potentially exposing the broader organization to larger fines. Third, the company challenges how Ofcom aggregates revenue across different services rather than assessing each platform individually.
Ofcom has defended its position, stating its methodology is based on a plain reading of the law's definition of "Qualifying Worldwide Revenue." A spokesperson said the regulator would robustly defend its reasoning and expressed disappointment that Meta is objecting to fee payments and potential future penalties calculated on this basis. The regulator has already demonstrated willingness to use its enforcement powers, having threatened action against X over AI-generated content and issued its first fine under the regime against 4chan in March.
Meta maintains it is committed to cooperating with Ofcom but believes the current fee and fine calculation methodology is excessive. The company stated that basing penalties on services being regulated in the countries where regulation occurs would still allow Ofcom to impose the largest fines in UK corporate history. This case represents the latest friction between Silicon Valley technology companies and UK regulators over the Online Safety Act's scope and enforcement mechanisms.
Source: https://www.theregister.com/security/2026/05/08/meta-fights-ofcom-over-how-many-billions-count-as-billions/5235662