Meta and TikTok have won their court challenge against the way EU regulators calculated supervisory fees under the Digital Services Act (DSA).

The two companies were charged an annual fee of 0.05% of their global net income, based on monthly active users and profitability, to cover monitoring costs. They argued the formula was unfair and led to disproportionate fees.

The EU’s General Court agreed, ruling that the methodology was adopted under the wrong legal process. Regulators now have 12 months to fix and formalise the fee calculation through a delegated act.

However, the court said the companies will not get refunds of the 2023 fees already paid. The Commission maintained that the principle and amount of the fees are sound, and only a procedural correction is needed.

The DSA, in force since November 2022, requires large online platforms like Meta, TikTok, Google, Amazon, Apple, and others to do more to combat illegal and harmful content or face fines of up to 6% of global turnover.

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