euronews.com
EU Court Halts DSA Supervisory Fees for Meta and TikTok
The EU General Court ruled that Instagram, Facebook, and TikTok do not have to pay 2023 supervisory fees under the Digital Services Act (DSA) due to procedural issues with the fee calculation methodology, though the ruling allows for provisional fees until the Commission revises its procedure.
- What is the core issue in the EU General Court's ruling regarding supervisory fees under the DSA?
- The court annulled the European Commission's implementing decisions regarding 2023 DSA supervisory fees for Instagram, Facebook, and TikTok because the fee calculation methodology, based on a common methodology for calculating average monthly active users, should have been established through a delegated act, not an implementing decision. The ruling maintains provisional fee payments while the Commission revises its procedure.
- What are the future implications of this ruling for the implementation of the DSA and the Commission's financial planning?
- The Commission must revise its fee calculation methodology within 12 months to comply with the DSA. This ruling highlights the need for clear legal procedures in levying fees and necessitates reassessment of the Commission's budgetary plans for DSA oversight, given the potential revenue shortfall until the methodology is corrected and fees are reinstated.
- How did the Commission determine the amount of supervisory fees for these platforms, and what is the financial impact of the ruling?
- The Commission calculated fees based on a formula considering the number of users, capped at 0.05% of each platform's worldwide profits. While the court found no error in the calculation itself, the procedural issue means these platforms do not have to pay the 2023 fees immediately. In 2023, the Commission charged a total of €58.2 million in fees, which did not cover expenses, leading to a deficit of €514,061.
Cognitive Concepts
Bias by Omission
While the article provides a comprehensive overview of the court case, potential omissions might include details about the specific arguments presented by the platforms or the Commission's detailed justification for their fee calculation methodology. However, given the nature of a news report, such omissions are likely due to space constraints rather than intentional bias.
Sustainable Development Goals
The DSA and its associated fees aim to create a more level playing field for businesses operating online, preventing the dominance of a few powerful companies and promoting fair competition. This indirectly contributes to reduced inequality by preventing large tech companies from exploiting their market power to the detriment of smaller businesses and consumers. While the ruling temporarily suspends fees, the principle of regulating large online platforms remains, supporting fairer competition in the long term.