Ma and TikTok did not want to pay the EU
Software

M**a and TikTok did not want to pay the EU to supervise themselves

Meta and TikTok have decided to challenge the fees they are required to pay to the European Union under the Digital Services Act (DSA) to support its content moderation requirements. In other words, social media companies have to fund their own surveillance, and they don’t like it.

  Image source: Ralph / pixabay.com

Image source: Ralph / pixabay.com

The fee is 0.05% of the company’s profits, and Meta’s management is unhappy that they are demanding €11 million from it, while its unprofitable competitors will not pay anything. TikTok expressed disagreement with the method of counting its users, according to which the platform’s contribution should be €3.9 million.

“We do not agree with the methodology used to calculate these fees. Currently, companies that show losses do not have to pay, even if they have a large user base, or [они] represent a greater regulatory burden – meaning some companies pay nothing, while others pay a disproportionate share of the total.”– told the resource The Verge Meta representative Ben Walters. “We disagree with the fee and will appeal on a number of grounds, including the use of erroneous third party estimates of the number of our monthly active users as the basis for calculating the total amount.”,” said TikTok representative Morgan Evans.

  Image source: antonbe / pixabay.com

Image source: antonbe / pixabay.com

Under the DSA, 20 companies classified as “Very Large Online Platforms” (VLOPs) will fund European officials’ oversight of moderation rules. Meta and TikTok received VLOP status because they have more than 45 million monthly active users in Europe. The DSA proposes a division of oversight costs so that companies with the most users pay more, unless they are unprofitable. The annual budget for these needs at the end of last year amounted to €45.2 million – three quarters of which came from Alphabet (€22.1 million) and Meta (€11 million). The third largest fee was TikTok with €3.9 million. The fee was calculated at a rate of 0.05% of profits for 2022, so Amazon and X are most likely exempt from fees. At the same time, X is under official investigation by the European Commission due to insufficiently effective, according to the department, moderation of materials related to the Israeli conflict.

In response to Meta’s actions, a representative of the European Commission said Barronsthat companies have the right to appeal, but the department will defend its position in court; In addition, all participants in the process have paid fees by December 31. Amazon and the German marketplace Zalando also challenged the DSA, but they were not satisfied with the size of the fees, but with the VLOP status itself. The DSA came into force last year, and companies that violate it must bring their activities into compliance with its requirements by February 17 – violation of the law risks a fine of 6% of the company’s annual income or blocking of its resources in the EU.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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