Meta has taken the UK High Court to challenge the Online Safety Act’s penalty regime, arguing that Ofcom’s newly granted powers to levy fines breach the law. The company asserts the regulator could impose penalties worth billions, a 10 per cent charge of its Qualifying Worldwide Revenue (QWR) or £18mn, whichever is higher. The filing may open door for other US tech firms to contest the regime.

Meta’s legal team, led by Monica Carss‑Frisk KC, contends the QWR calculation is undefined and that fees derived from global revenue—including services outside the Act’s scope—are disproportionate. The regulator estimates annual fees at 0.02‑0.03 % of liable firms’ QWR, but Meta warns that five companies would shoulder 91 % of the total, threatening investment significantly and could influence future broadly UK tech policy.

The challenge could spark broader industry resistance, with Epic Games and the Computer & Communications Industry Association seeking to intervene. If the court curtails the 10 per cent cap, Meta— which posted $201bn in revenue and $60.5bn profit last year—may avoid fines that would dwarf its net income. The outcome will shape how UK regulators fund online‑safety enforcement.