Meta challenges UK online safety watchdog over how fees and fines are calculated

By Paul Sandle LONDON, Oct 13 (Reuters) — Facebook and Instagram owner Meta challenged Britain's media regulator on Tuesday over how it calculates fees and potential fines under the Online Safety Act, arguing that the watchdog's methods are disproportionate. The 2023 law allows Ofcom to impose fines of up to 10% of qualifying worldwide revenue, or £18 million ($23.9 million), whichever is greater, and to recover the costs of running its regime through fees calculated by reference to revenue. Meta's challenge comes a week after Ofcom opened an investigation into whether the company properly assessed the risks posed by its Instagram Instants feature before launching it in May. The case brought by Meta opened in London's High Court on Tuesday and centres on Ofcom's use of worldwide rather than UK revenue to determine fees and maximum potential fines. Meta argued that Ofcom had exceeded its statutory powers by defining qualifying worldwide revenue as broadly as possible, with the objective of imposing the highest possible penalties. That was Ofcom's "overriding concern", Meta said in its legal submission. Meta is also challenging Ofcom's method of calculating fines where two or more pr