[ad_1]\n<\/p>\n
Meta is challenging a fee it must pay EU regulators tasked with enforcing tough new content moderation rules required by the Digital Services Act (DSA), Reuters <\/em>reports. Although the fee is capped at 0.05 percent of a company\u2019s profits, Meta isn\u2019t happy that loss-making companies won\u2019t have to pay while it\u2019s on the hook for a reported \u20ac11 million.<\/p>\n<\/div>\n \u201cWe disagree with the methodology used to calculate these fees,\u201d Meta\u2019s EMEA policy comms spokesperson Ben Walters tells The Verge<\/em>. \u201cCurrently, companies that record a loss don\u2019t have to pay, even if they have a large user base or represent a greater regulatory burden, which means some companies pay nothing, leaving others to pay a disproportionate amount of the total.\u201d <\/p>\n<\/div>\n \u201cSome companies pay nothing, leaving others to pay a disproportionate amount of the total\u201d<\/p>\n<\/div>\n<\/div>\n Under the DSA, the 20 companies identified as very large online platforms (VLOPs) are expected to fund the bloc\u2019s enforcement of the new moderation rules. Meta has been labeled a VLOP because it has at least 45 million monthly active users in the EU. The DSA divvies up enforcement costs so that companies with the most users pay more, unless they were unprofitable.<\/p>\n<\/div>\n Meta and Google\u2019s parent company Alphabet are therefore on the hook to pay around three quarters of the \u20ac45.2 million (around $48.7 million) annual enforcement bill. That works out to \u20ac11 million (around $11.9 million) for Meta and \u20ac22.1 million (around $23.8 million) for Alphabet, according to a Bloomberg<\/em> report last year. But because the fee is capped at 0.05 percent of a company\u2019s annual global profits in 2022, companies like Amazon and X were likely to pay nothing despite consuming EU resources required to monitor and enforce DSA compliance.<\/p>\n<\/div>\n X, for example, is under official investigation by the European Commission over concerns that the company previously known as Twitter may have broken the DSA\u2019s rules by failing to prevent \u201cthe dissemination of illegal content in the context of Hamas\u2019 terrorist attacks against Israel.\u201d<\/p>\n<\/div>\n Responding to Meta\u2019s legal challenge, a European Commission spokesperson told Barrons<\/em> that companies have a right to appeal, but insisted that its \u201cdecision and methodology are solid,\u201d and said it will defend its position in court. Amazon and Zalando have also challenged the DSA, but over their designations as VLOPs, rather than the specific fees. The EU spokesperson confirmed to Barrons<\/em> that all companies paid their fees by the December 31st deadline.<\/p>\n<\/div>\n The DSA came into force last year, and companies need to be compliant with it by February 17th. Companies that fail to comply could face fines of up to 6 percent of their annual revenue, or even be banned in the EU.<\/p>\n<\/div>\n[ad_2]\n","protected":false},"excerpt":{"rendered":" [ad_1] Meta is challenging a fee it must pay EU regulators tasked with enforcing tough new content moderation rules required by the Digital Services Act (DSA), Reuters reports. Although the fee is capped at 0.05 percent of a company\u2019s profits, Meta isn\u2019t happy that loss-making companies won\u2019t have to pay while it\u2019s on the hook …<\/p>\n","protected":false},"author":1,"featured_media":25896,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts\/25895"}],"collection":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/comments?post=25895"}],"version-history":[{"count":0,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts\/25895\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/media\/25896"}],"wp:attachment":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/media?parent=25895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/categories?post=25895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/tags?post=25895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}