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EU Court Tells Commission to Redraft Digital Services Act Fee Rules After Meta, TikTok Win

By  |  September 10, 2025

Meta Platforms and TikTok achieved a legal victory on Wednesday after the European Union’s General Court ruled against the methodology regulators used to calculate supervisory fees under the bloc’s new digital rules. The companies, however, will not see immediate refunds of the fees already paid.

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    The dispute centered on a levy of 0.05% of annual worldwide net income imposed by the European Commission to cover enforcement costs tied to the Digital Services Act (DSA). According to Reuters, the charge was based on user numbers and profitability, with Meta and TikTok arguing that the formula unfairly inflated their contributions. Both companies challenged the approach in separate lawsuits, contending that the burden was not proportionate.

    The Luxembourg-based General Court agreed, stating that the methodology should have been introduced through a delegated act rather than implementing decisions. Per a statement from the judges, regulators now have 12 months to develop a new legal basis for the calculation of the levy. The decision means the Commission must adjust its framework but is not obligated to return 2023 fees while the revision is underway.

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    The Commission welcomed aspects of the ruling, emphasizing that the court had validated the underlying principle of the fee. “The Court’s ruling requires a purely formal correction on the procedure. We now have 12 months to adopt a delegated act to formalise the fee calculation and adopt new implementing decisions,” a Commission spokesperson said.

    Related: Meta to Suspend Political and Social Issue Ads in EU Ahead of New Regulations

    TikTok responded positively to the decision, saying it would closely monitor developments as regulators adjust the rules. Meta also welcomed the judgment, pointing out that under the current system, companies recording losses avoid fees even if they have vast user bases. A Meta spokesperson said this leaves profitable firms carrying a disproportionate financial load, an issue they hope will be corrected under the new framework.

    The DSA, which took effect in late 2022, mandates that very large online platforms take stronger measures against illegal and harmful content or face fines up to 6% of global turnover. The supervisory fees extend beyond Meta and TikTok, with Amazon, Apple, Booking.com, Google, Microsoft, Elon Musk’s X, Snapchat, and Pinterest also on the list of firms required to contribute.

    The cases were filed under T-55/24 (Meta Platforms Ireland v Commission) and T-58/24 (TikTok Technology v Commission).

    Source: Reuters