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Brussels, 12 June 2025— The social bigwigs in the field of media, Meta and TikTok, have filed formal legal challenges before the second-highest court of the European Union in the fight against fees for supervisory oversight pursuant to the Digital Services Act (DSA).
The companies argue that they believe the EU Commission uses an unclear and unfair method of calculating the annual DSA fees. They claim it is burdensome for platforms that have diverse revenue models and users. Observers believe the General Court of the European Union is currently examining the matter. The court actively reviews EU regulations and administrative decisions.
In accordance with the DSA, the EU requires the largest platforms—also known by the name VLOPs (Very Large Online Platforms)—to pay an annual supervisory fee. The EU requires platforms to contribute 0.05% of their net annual profits to fund its surveillance initiatives. This law covers all platforms with over 45 million monthly active users in the EU. It aims to hold large-scale digital services more accountable.
Meta, the parent company of Facebook and Instagram, claims the Commission used group-wide financial data instead of EU-based subsidiaries. Meta argues this method inflates the fee and lacks transparency and consistency. According to a Meta representative, the approach is a “black box” that offers minimal insight into the final figures’ computation.
TikTok is controlled by Chinese company ByteDance. It is also disputing the amount of its fee for supervision. It claims that the commission’s calculation method double-counted users that use the app on various devices. This could have resulted in an over-inflated active user count and a disproportionate fiscal burden upon the business.
Both companies are seeking cancellation of the current fee structure, saying that the current system distorts competition because it makes smaller and differently structured businesses pay excessively high fees.The European Commission has backed the method, saying that rules were established and consistently enforced on all platforms.
We anticipate that the court will complete its decision before the year ends. This ruling will have a profound impact on the way Europe enforces its digital laws. It could also impact the extent of financial responsibility that companies have towards Big Tech companies operating in the region.
The legal fight comes as the EU puts pressure on tech companies as well as content providers to adhere to strict guidelines. The law covers regulations on privacy of data, content moderating, and accountability for algorithms. The Digital Services Act (DSA) and the Digital Markets Act (DMA) describe them.
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