Giant Online Platforms Could Face Enforcement Fee Under EU Rules

The world’s biggest online platforms could be assessed an annual fee of up to 0.1% of yearly net income to cover costs to regulate compliance with European Union (EU) rules requiring them to police their content, Reuters reported Tuesday (April 5).

The Digital Services Act (DSA), which includes the fee, is likely to be approved by lawmakers and the EU this month. The levy would be a first for the European Commission, the executive body of the 28-member block.

“The overall amount of the annual supervisory fees shall be based on the estimated costs the Commission incurs in relation to its supervisory tasks under this Regulation,” according to the document seen by the news organization.

The imposition of the charge comes as the commission seeks revenue to boost the EU’s economic growth following the pandemic and to encourage a more digital economy.

The commission has said the assessment fee should be balanced to the size of the service as reflected by the number of users in the EU. In addition, the panel defines large online platforms subject to the measure as any company with 45 million or more monthly users.

Last month, Reuters reported EU Antitrust Commissioner Margrethe Vestager said a deal between the bloc’s governments and parliamentarians on the DSA might be reached in April.

Read more: EU Content Moderation Rules May Soon Apply to Big Tech

Vestager proposed the DSA more than a year ago. It requires digital firms to do more to combat unlawful content or face fines of up to 6% of their global revenue.

EU governments and legislators are debating what constitutes an online marketplace subject to the laws and what criteria should be used to prohibit targeted advertising.