A Newly Empowered Media Regulator and an Angry Tech Titan
Meta is launching a High Court challenge against Ofcom's revenue-based fee structure under the newly enforced Online Safety Act.
We are beginning to see the first effects of the Online Safety Act, a sweeping piece of legislation that has endowed British media regulator with the ability to fine online services companies up to 10% of their worldwide turnover. For a giant like Meta, this might mean fines of up to US$20 billion.
As the regulator fines an online forum promoting suicide and Google denies breaching the Act for failing to remove the site from its search engine results, Breaking Law takes a look at the new legislation and what online services companies need to be wary of.
Tech titan Meta has filed a legal challenge against the British media regulator Ofcom, saying its methodology of fees and fines should not be based on a company’s revenue – a methodology that might leave Meta liable for up to US$20 billion.
The Facebook and WhatsApp parent says the regulator’s method of using a company’s qualifying worldwide revenue as the basis for its safety work operating costs are “disproportionate”. The fees apply to firms earning more than £250 million per year.
The fees and possible fines were introduced last September following the entry into force of the Online Safety Act. The statute introduces protections against harmful content online, with Ofcom carrying out online safety work and passing operating fees back to tech companies.
Ofcom is the UK’s independent regulator for the telecoms, post and broadcasting sectors as well as for online services. It is funded partly through fees levied on industry and partly through the retention of spectrum fees (licence fees on radio bandwidth). In non-licensed sectors, its fees are only levied on providers which exceed a certain turnover threshold.
The Online Safety Act was introduced to combat the proliferation of harmful content on the internet.
It imposed responsibilities on Ofcom including the delivery of regulatory documents, research into causes and mitigations of harm online, and stakeholder engagement and enforcement activity.
The Act also grants enforcement powers. Where the regulator finds a provider has breached its online safety obligations, it is entitled to impose a penalty of up to 10% of its qualifying worldwide revenue or £18 million (whichever is the greater figure).
Ofcom has chosen to define “qualifying worldwide revenue” as the total amount of revenue received by the provider which is referable to relevant parts of an online service.
In setting its fees, Ofcom is required to exercise the principles of proportionality, transparency and stability.
Meta is challenging the fee structure on the basis of proportionality. While the final calculations for Meta’s qualifying worldwide revenue are not clear, its full-year report for 2025 places its worldwide revenue at US$200.97 billion, giving it a potential fee liability of US$20 billion.
The company argues the fee structure would lead to a small number of companies bearing the brunt of Ofcom’s costs. It also says the calculations are not linked specifically to revenues from UK services.
The case will be heard by the High Court, with Fortnite-maker Epic Games and the Computer and Communications Industry Association both expected to seek permission to intervene.
Meanwhile, this week saw the first fines under the Online Safety Act. Ofcom used its powers to fine an online suicide forum almost £1 million, after finding that it did not protect British people from illegal content.
The regulator has not named the site, which it says has been linked to over 130 deaths in the UK and has been cited in multiple coroners’ reports. Despite being based outside the UK, the site has been used within the country – even without a VPN – and was found by Ofcom to present a “material risk of significant harm”. Under the Act, the regulator therefore has jurisdiction to act.
Google has since denied breaching the Act for promoting the site, after a link to the forum continued to appear in search engine results.
What should businesses providing online services note?
It doesn’t matter how big you are – if you provide online services including social media platforms, search engines or websites hosting user-generated content, you must check you comply with the Act.
If you fall into these categories, you will need to undertake an assessment of any risks posed in relation to illegal or harmful content, and then work out steps to mitigate such risks.
You should be especially careful of content that might impact minors, and put in place effective mechanisms to mitigate it.
Be conscious of pornography, material promoting self-harm or suicide, and anything illegal involving children.
Check whether you need to be applying age verification checks as well.
Comply with the record-keeping and review duties for your risk assessment and related protections.
Read the Ofcom guidance here. There is a handy tool to check if the Online Safety Act applies to you.