"In order to determine the amount of the supervisory fee payable for 2023, the Commission calculated the number of average monthly active recipients of the services concerned on the basis of a common methodology based on data provided by third-party operators and annexed to each implementing decision. However, since that methodology is an essential and indispensable element of the determination of the supervisory fee, it should have been adopted not in the context of implementing decisions but in a delegated act, in accordance with the rules laid down in the DSA."
"Back in 2022, as part of the initial documentation for the EU Digital Services Act (DSA), which applies to all large tech platforms operating in the region, the EU Commission noted that it would look to also charge an annual "supervisory fee" to these platforms in order to help finance their own enforcement."
"While EU regulatory charges continue to hit hard for all the major social apps, both Meta and TikTok have had a rare win this week, with an EU court siding with their argument that the European Commission's " supervisory fee" is not a fair charge for each app."
The EU Commission planned an annual supervisory fee under the Digital Services Act, scaled according to platform revenue and based on average monthly active recipients. The 2023 supervisory-fee calculation relied on a common methodology annexed to implementing decisions and data from third-party operators. Meta and TikTok legally challenged the fee. A Luxembourg-based General Court found that the common methodology was essential to determining the fee and therefore required adoption through a delegated act under DSA rules rather than through implementing decisions. The ruling invalidates the chosen procedural route for establishing the 2023 supervisory-fee methodology.
Read at Social Media Today
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