Meta and TikTok Sue EU on Content Moderation
Meta and TikTok have initiated lawsuits against the European Union, contesting a levy imposed to fund the enforcement of the Digital Services Act (DSA), a cornerstone of Europe’s content moderation framework. Meta, the parent company of Instagram and Facebook, has lodged a legal challenge with the EU’s General Court, arguing that the levy distribution is inequitable, with some companies bearing a disproportionate share of the total cost. Following Meta’s lead, TikTok has also filed a lawsuit, criticizing the Commission’s calculation methodology as flawed.
The European Commission estimates that approximately €45 million will be required in 2024 to oversee the compliance of major platforms like Facebook, Instagram, TikTok, and YouTube with the DSA, which aims to mitigate illegal and harmful content online. This financial requirement is to be met by an annual supervisory fee from these companies, based on their user numbers and capped at 0.05 percent of their annual global revenue. However, the disparity in the levy’s imposition—exempting companies with minimal or no net income like X, Amazon, and Snapchat—has raised concerns about fairness and burden distribution among the larger tech entities.
The lawsuits emerge amidst heightened expectations from the Commission to enforce the DSA rigorously, especially in the lead-up to the European Parliament election in June. The Act not only seeks to eliminate toxic and violent online content but also plays a crucial role in combating disinformation. Meanwhile, the Commission maintains confidence in its decision and methodology, vowing to defend its stance in court.
This legal battle underscores the ongoing tension between tech giants and regulatory bodies over the costs and responsibilities of content moderation. It also highlights the challenges in implementing a law that equitably distributes financial burdens among diverse platforms, a crucial factor for its success and sustainability. As the cases progress, they will undoubtedly set important precedents for the future of digital regulation and company compliance within the EU.
Source: Meta, TikTok take EU to court over online content rulebook
