ByteDance, the owner of Meta and TikTok, does not intend to pay the European Union to regulate them. Companies have protested the monitoring fee set by EU moderators, which they are now required to monitor meta, Under TikTok and other major platforms Digital Services Act (DSA), This was reported by Politico. Meta was the first to announce its move, followed by ByteDance a day later.
Under the current agreement, all designated companies must share 45.2 million euros ($48.7 million). EU regulators 20 should be argued for proper control Very Large Online Platforms and two Very Large Online Search Engines (VLOSE). Each regulated platform has 45 million or more users and a financial contribution based on the size of that number. They also cannot owe more than 0.05 percent of 2022 net profits. However, companies like it Amazon and Pinterest, which says it makes no profit, won’t owe anything. Meta, on the other hand, received 11 million euros ($11.9 million) in notes under an existing agreement. ByteDance has not publicly disclosed how much it owes.
Meta takes issue with European Union regulators’ methodology for selecting each company’s fee. “Currently, companies that record a loss do not have to pay, even if they have a large user base or represent a greater regulatory burden. This means that some companies pay nothing, while others have to pay a disproportionate amount of the total ” Meta spokeswoman noted. Failure to comply can result in fines of up to six percent of the company’s global revenue.
The DSA Effective in 2023, Meta and ByteDance’s VLOP designations came alongside other major sites like Google and X, formerly known as Twitter. In addition to payment, VLOPs must follow specific rules, such as transparent advertising and content moderation, sharing data with the European Commission, and cooperating with an annual independent audit.