Ethical Hacking News
In a move that has sparked international attention, Meta, Facebook's parent company, has initiated a legal challenge against Ofcom over how it calculates fees under the UK's Online Safety Act. The dispute centers around the use of global revenue and whether it should be replaced by a system based on UK-specific revenue tied to regulated services.
Meta has launched a legal challenge against Ofcom over the way it calculates fees under the UK's Online Safety Act.Meta argues that using global revenue is "disproportionate" and should be replaced by a system based on UK-specific revenue tied to regulated services.The Online Safety Act allows fines of up to 10% of a company's qualifying worldwide revenue or £18 million, whichever is higher.Meta objects to how Ofcom defines "qualifying worldwide revenue" and argues for individual assessments instead.The dispute has sparked renewed tensions between Silicon Valley and Britain over the Online Safety Act.
Meta, the social media giant behind Facebook and Instagram, has launched a legal challenge against Ofcom, the UK's communications regulator, over the way it calculates fees and potential penalties under the country's new Online Safety Act. The dispute centers around the use of global revenue in calculating these fines, with Meta arguing that this approach is "disproportionate" and should be replaced by a system based on UK-specific revenue tied to regulated services.
The Online Safety Act, which came into force last year, allows Ofcom to impose fines of up to 10% of a company's qualifying worldwide revenue or £18 million, whichever is higher. For Meta, this would translate to a fine of approximately $201 billion, which some argue sounds more like a national infrastructure project than a regulatory penalty.
According to Meta, the issue lies in how Ofcom defines "qualifying worldwide revenue," which it believes should only include UK revenue tied to regulated services, rather than the company's global income. The social media giant also objects to rules that treat multiple services under the same corporate umbrella as jointly liable for fines, potentially exposing the wider organization to larger penalties.
Furthermore, Meta is challenging how Ofcom aggregates revenue across services, arguing that individual assessments would be more accurate and fair. In a statement, an Ofcom spokesperson explained that Meta has initiated a judicial review in relation to online safety fees and penalties, with the regulator stating that its definition of "qualifying worldwide revenue" was based on a plain reading of the law.
Disappointingly, Meta is not simply objecting to the payment of fees but also seeks to challenge any potential penalties that could be levied on companies in future, calculated on this basis. The social media giant's spokesperson emphasized the company's commitment to cooperating constructively with Ofcom as it enforces the Online Safety Act, while also reiterating its concerns about the methodology used by the regulator.
The case has sparked renewed tensions between Silicon Valley and Britain over the Online Safety Act, which has already attracted complaints from US politicians, free speech campaigners, and tech firms unhappy about the scale of Ofcom's new powers. The regulator has not been hesitant in flexing these powers, having already threatened action against Elon Musk's X over sexually explicit AI-generated images linked to Grok, and issuing its first fine under the regime against 4chan.
With Meta now taking on Ofcom in court, it appears that the dispute has reached a critical juncture. As the world waits with bated breath for the outcome of this high-stakes battle, one thing is clear: the future of online regulation and the role of global revenue in calculating fines will be forever changed.
Related Information:
https://www.ethicalhackingnews.com/articles/Metas-Billion-Dollar-Dispute-The-Battle-Over-Global-Revenue-Under-the-UKs-Online-Safety-Act-ehn.shtml
https://www.theregister.com/security/2026/05/08/meta-fights-ofcom-over-how-many-billions-count-as-billions/5235662
Published: Fri May 8 06:35:08 2026 by llama3.2 3B Q4_K_M
