A clash between Poland’s right-wing president and its centrist ruling coalition
over the European Union’s flagship social media law is putting the country
further at risk of multimillion euro fines from Brussels.
President Karol Nawrocki is holding up a bill that would implement the EU’s
Digital Services Act, a tech law that allows regulators to police how social
media firms moderate content. Nawrocki, an ally of U.S. President Donald Trump,
said in a statement that the law would “give control of content on the internet
to officials subordinate to the government, not to independent courts.”
The government coalition led by Prime Minister Donald Tusk, Nawrocki’s rival,
warned this further exposed them to the risk of EU fines as high as €9.5
million.
Deputy Digital Minister Dariusz Standerski said in a TV interview that, “since
the president decided to veto this law, I’m assuming he is also willing to have
these costs [of a potential fine] charged to the budget of the President’s
Office.”
Nawrocki’s refusal to sign the bill brings back bad memories of Warsaw’s
years-long clash with Brussels over the rule of law, a conflict that began when
Nawrocki’s Law and Justice party rose to power in 2015 and started reforming the
country’s courts and regulators. The EU imposed €320 million in penalties on
Poland from 2021-2023.
Warsaw was already in a fight with the Commission over its slow implementation
of the tech rulebook since 2024, when the EU executive put Poland on notice for
delaying the law’s implementation and for not designating a responsible
authority. In May last year Brussels took Warsaw to court over the issue.
If the EU imposes new fines over the rollout of digital rules, it would
“reignite debates reminiscent of the rule-of-law mechanism and frozen funds
disputes,” said Jakub Szymik, founder of Warsaw-based non-profit watchdog group
CEE Digital Democracy Watch.
Failure to implement the tech law could in the long run even lead to fines and
penalties accruing over time, as happened when Warsaw refused to reform its
courts during the earlier rule of law crisis.
The European Commission said in a statement that it “will not comment on
national legislative procedures.” It added that “implementing the [Digital
Services Act] into national law is essential to allow users in Poland to benefit
from the same DSA rights.”
“This is why we have an ongoing infringement procedure against Poland” for its
“failure to designate and empower” a responsible authority, the statement said.
Under the tech platforms law, countries were supposed to designate a national
authority to oversee the rules by February 2024. Poland is the only EU country
that hasn’t moved to at least formally agree on which regulator that should be.
The European Commission is the chief regulator for a group of very large online
platforms, including Elon Musk’s X, Meta’s Facebook and Instagram, Google’s
YouTube, Chinese-owned TikTok and Shein and others.
But national governments have the power to enforce the law on smaller platforms
and certify third parties for dispute resolution, among other things. National
laws allow users to exercise their rights to appeal to online platforms and
challenge decisions.
When blocking the bill last Friday, Nawrocki said a new version could be ready
within two months.
But that was “very unlikely … given that work on the current version has been
ongoing for nearly two years and no concrete alternative has been presented” by
the president, said Szymik, the NGO official.
The Digital Services Act has become a flashpoint in the political fight between
Brussels and Washington over how to police online platforms. The EU imposed its
first-ever fine under the law on X in December, prompting the U.S.
administration to sanction former EU Commissioner Thierry Breton and four other
Europeans.
Nawrocki last week likened the law to “the construction of the Ministry of Truth
from George Orwell’s novel 1984,” a criticism that echoed claims by Trump and
his top MAGA officials that the law censored conservatives and right-wingers.
Bartosz Brzeziński contributed reporting.
Tag - e-commerce
WARSAW — Poland’s nationalist President Karol Nawrocki on Friday sided with his
ally U.S. President Donald Trump to veto legislation on enforcing the EU’s
social media law, which is hated by the American administration.
Trump and his top MAGA officials condemn the EU’s Digital Services Act — which
seeks to force big platforms like Elon Musk’s X, Facebook, Instagram to moderate
content — as a form of “Orwellian” censorship against conservative and
right-wingers.
The presidential veto stops national regulators in Warsaw from implementing the
DSA and sets Nawrocki up for a a clash with centrist pro-EU Prime Minister
Donald Tusk. Tusk’s parliamentary majority passed the legislation introducing
the DSA in Poland.
Nawrocki argued that while the bill’s stated aim of protecting citizens —
particularly minors — was legitimate, the Polish bill would grant excessive
power to government officials over online content, resulting in “administrative
censorship.”
“I want this to be stated clearly: a situation in which what is allowed on the
internet is decided by an official subordinate to the government resembles the
construction of the Ministry of Truth from George Orwell’s novel 1984,” Nawrocki
said in a statement — echoing the U.S.’s stance on the law.
Nawrocki also warned that allowing authorities to decide what constitutes truth
or disinformation would erode freedom of expression “step by step.” He called
for a revised draft that would protect children while ensuring that disputes
over online speech are settled by independent courts.
Deputy Prime Minister and Digital Affairs Minister Krzysztof Gawkowski dismissed
Nawrocki’s position, accusing the president of undermining online safety and
siding with digital platforms.
“The president has vetoed online safety,” Gawkowski told a press briefing Friday
afternoon, arguing the law would have protected children from predators,
families from disinformation and users from opaque algorithms.
The minister also rejected Nawrocki’s Orwellian comparisons, saying the bill
explicitly relied on ordinary courts rather than officials to rule on online
content.
Gawkowski said Poland is now among the few EU countries without national
legislation enabling effective enforcement of the DSA and pledged that the
government would continue to pursue new rules.
The clash comes as enforcement of the social media law has become a flashpoint
in EU-U.S. relations.
Brussels has already fined Elon Musk’s X €120 million for breaching the law,
prompting a furious response from Washington, including travel bans imposed by
the Trump administration on former EU Commissioner Thierry Breton, an architect
of the tech law, and four disinformation experts.
The DSA allows fines of up to 6 percent of a company’s global revenue and, as a
measure of last resort, temporary bans on platforms.
Earlier this week, the European Commission expanded its investigation into X’s
AI service Grok after it started posting a wave of non-consensual sexualized
pictures of people in response to X users’ requests.
The European Commission’s digital spokesperson Thomas Regnier said the EU
executive would not comment on national legislative procedures. “Implementing
the DSA into national law is essential to allow users in Poland to benefit from
the same DSA rights, such as challenging platforms if their content is deleted
or their account suspended,” he said.
“This is why we have an ongoing infringement procedure against Poland. We have
referred Poland to the Court of Justice of the EU for failure to designate and
empower the Digital Services Coordinator,” in May 2025, Regnier added.
Gawkowski said that the government would make a quick decision on what to do
next with the vetoed bill but declined to offer specifics on what a new bill
would look like were it to be submitted to parliament again.
Tusk four-party coalition does not have enough votes in parliament to override
Nawrocki’s vetoes. That has created a political deadlock over key legislation
efforts by the government, which stands for reelection next year. Nawrocki,
meanwhile, is aiming to help the Law and Justice (PiS) political party he’s
aligned with to retake power after losing to Tusk in 2023.
Mathieu Pollet contributed reporting.
The Trump administration is lashing out at foreign laws aimed at clamping down
on online platforms that have gained outsized influence on people’s attention —
while trying to avoid launching new trade wars that could threaten the U.S.
economy.
Over the past month, U.S. officials have paused talks on a tech pact with the
United Kingdom, canceled a trade meeting with South Korean officials and issued
veiled threats at European companies over policies they believe unfairly
penalize U.S. tech giants.
Several tech policy professionals and people close to the White House say the
recent actions amount to a “negotiating tactic,” in the words of one former U.S.
trade official. As talks continue with London, Brussels and Seoul, the Office of
the U.S. Trade Representative is pressing partners to roll back digital taxes on
large online platforms and rules aimed at boosting online privacy protections —
measures U.S. officials argue disproportionately target America’s tech
behemoths.
“It’s telegraphing that we’ve looked at this deeply, we think there’s a problem,
we’re looking at tools to address it and we’re looking at remedies if we don’t
come to an agreement,” said Everett Eissenstat, who served as the director of
the National Economic Council in Trump’s first term. “It’s not an unprecedented
move, but naming companies like that and telegraphing that we have targets, we
have tools, is definitely meaningful.”
But so far, the administration has shied away from new tariffs or other
aggressive actions that could upend tentative trade agreements or upset
financial markets. And the new tough talk may not be enough to placate some
American tech companies, who are pressing for action.
One possible action, floated by U.S. Trade Representative Jamieson Greer, would
be launching investigations into unfair digital trade practices, which would
allow the administration to take action against countries that impose digital
regulations on U.S. companies.
“I would just say that’s the next level of escalation. I think that’s what
people are waiting for and looking for,” said a representative from a major tech
company, granted anonymity to speak candidly and discuss industry expectations.
“What folks are looking for is like action over the tweets, which, we love the
tweets. Everyone loves the tweets.”
Trump used similar investigations to justify raising tariffs on hundreds of
Chinese imports in his first term. But those investigations take time, and it
can be years before any increases would go into effect. Greer has also been
careful to hedge threats of new trade probes, stressing they are not meant to
spiral into a broader conflict. Speaking on CNBC’s “Squawk Box” last week, he
floated launching a trade investigation into the EU’s digital policies, but said
the goal would be a “negotiated outcome,” not an automatic path to higher
tariffs.
“I don’t think we’re in a world where we want to have some renewed trade fight
or something with the EU — that’s not what we’re talking about,” Greer said. “We
want to finish off our deal and implement it,” he continued, referring to the
trade pact the partners struck over the summer.
Greer also raised the prospect of a trade probe in private talks with South
Korea earlier this fall, saying the U.S. might have to resort to such action if
the country continues to pursue legislation the administration views as harmful
to U.S. tech firms. But a White House official clarified that the U.S. was not
yet considering such a “heavy-handed approach.”
Even industry officials aren’t certain how aggressive they want the Trump
administration to be, acknowledging that if the U.S. escalated its fight with
the EU over their tech regulations, it could spark a digital trade war that
would ultimately end up harming all of the companies involved, according to a
former USTR official, granted anonymity to speak candidly.
President Donald Trump has long criticized the tech regulations — pioneered by
the European Union and now proliferating around the globe. But he’s made the
issue a much more central part of his second-term trade agenda, with mixed
results. While Trump’s threat to cut off trade talks with Canada got Prime
Minister Mark Carney to rescind their three percent tax on revenue earned by
large online platforms, his administration has struggled to make headway with
the EU, UK and South Korea in the broader trade negotiations over tariffs.
The tentative trade deal the administration reached with the EU over the summer
included a commitment from the bloc to address “unjustified digital trade
barriers” and a pledge not to impose network usage fees, but left the scope and
direction of future discussions largely undefined. The agreement fleshed out
with South Korea this fall appeared to go even further, spelling out commitments
that regulations governing online platforms and cross-border data flows won’t
disadvantage American companies.
But none of those governments have so far caved to U.S. pressure to abandon
their digital regulations entirely, and the canceled talks and threatening
social media posts are a sign of Trump’s growing frustration.
“You won’t be surprised to know that what we think is fair treatment and what
they think is fair treatment is quite different and I’ve been quite frankly
disappointed over the past few months to see zero moderation by the EU,” Greer
said Dec. 10 at an event at the Atlantic Council.
Last week, Greer’s office amped up the rhetoric further, threatening to take
action against major European companies like Spotify, German automation company
Siemens and Mistral AI, the French artificial intelligence firm, if the EU
doesn’t back off enforcement of its digital rules. The threat came a week after
the EU fined X, the company formerly known as Twitter, $140 million for failing
to meet EU transparency rules.
Greer’s office also canceled a meeting planned for last Thursday with South
Korean officials, as South Korean lawmakers introduced new digital legislation
and held an explosive hearing on a data breach at Coupang, an
American-headquartered e-commerce company whose largest market is in South
Korea.
The South Korean Embassy denied any relationship between the Coupang hearing and
the cancellation of the recent meeting.
“Neither Coupang’s data breach, the subsequent investigation by the Korean
government, nor the National Assembly’s hearing played a role in the scheduling
of the KORUS Joint Committee,” said an embassy official.
The canceled meetings and frozen talks are significant — delaying implementation
of bare bones trade agreements and investment pledges inked in recent months.
But the Trump administration has shown little interest in blowing up the deals
its reached and reapplying the steep tariffs it threatened over the summer,
which could trigger significant retaliation and, as concerns about affordability
and inflation continue to simmer in the U.S., prove politically dicey.
Launching trade investigations at USTR or fining specific foreign companies
could be a less inflammatory move.
“What is happening is that these issues are starting to come to a head,” said
Dirk Auer, a Director of Competition Policy International Center for Law &
Economics, who focuses on antitrust issues and recently testified before
Congress on digital services laws. “At some point the administration has to put
up or shut up. They need to put their money where their mouth is. And I think
that’s what’s happening right now.”
Gabby Miller contributed to this report.
BRUSSELS — The European Commission is cracking down on two Chinese companies,
airport scanner maker Nuctech and e-commerce giant Temu, that are suspected of
unfairly penetrating the EU market with the help of state subsidies.
The EU executive opened an in-depth probe into Nuctech under its Foreign
Subsidies Regulation on Thursday, a year and a half after initial inspections at
the company’s premises in Poland and the Netherlands.
“The Commission has preliminary concerns that Nuctech may have been granted
foreign subsidies that could distort the EU internal market,” the EU executive
said in a press release.
Nuctech is a provider of threat detection systems including security and
inspection scanners for airports, ports, or customs points in railways or roads
located at borders, as well as the provision of related services.
EU officials worry that Nuctech may have received unfair support from China in
tender contracts, prices and conditions that can’t be reasonably matched by
other market players in the EU.
“We want a level playing field on the market for such [threat detection]
systems, keeping fair opportunities for competitors, customers such as border
authorities,” Executive Vice President Teresa Ribera said in a statement, noting
that this is the first in-depth investigation launched by the Commission on its
own initiative under the FSR regime.
Nuctech may need to offer commitments to address the Commission’s concerns at
the end of the in-depth probe, which can also end in “redressive measures” or
with a non-objection decision.
The FSR is aimed at making sure that companies operating in the EU market do so
without receiving unfair support from foreign governments. In its first two
years of enforcement, it has come under criticism for being cumbersome on
companies and not delivering fast results.
In a statement, Nuctech acknowledged the Commission’s decision to open an
in-depth investigation. “We respect the Commission’s role in ensuring fair and
transparent market conditions within the European Union,” the company said.
It said it would cooperate with the investigation: “We trust in the integrity
and impartiality of the process and hope our actions will be evaluated on their
merits.”
TEMU RAIDED
In a separate FSR probe, the Commission also made an unannounced inspection of
Chinese e-commerce platform Temu.
“We can confirm that the Commission has carried out an unannounced inspection at
the premises of a company active in the e-commerce sector in the EU, under the
Foreign Subsidies Regulation,” an EU executive spokesperson said in an emailed
statement on Thursday.
Temu’s Europe headquarters in Ireland were dawn-raided last week, a person
familiar with Chinese business told POLITICO. Mlex first reported on the raids
on Wednesday.
The platform has faced increased scrutiny in Brussels and across the EU. Most
recently, it was accused of breaching the EU’s Digital Services Act by selling
unsafe products, such as toys. The platform has also faced scrutiny around how
it protects minors and uses age verification.
Temu did not respond to a request for comment.
The discussion surrounding the digital euro is strategically important to
Europe. On Dec. 12, the EU finance ministers are aiming to agree on a general
approach regarding the dossier. This sets out the European Council’s official
position and thus represents a major political milestone for the European
Council ahead of the trilogue negotiations. We want to be sure that, in this
process, the project will be subject to critical analysis that is objective and
nuanced and takes account of the long-term interests of Europe and its people.
> We do not want the debate to fundamentally call the digital euro into question
> but rather to refine the specific details in such a way that opportunities can
> be seized.
We regard the following points as particularly important:
* maintaining European sovereignty at the customer interface;
* avoiding a parallel infrastructure that inhibits innovation; and
* safeguarding the stability of the financial markets by imposing clear holding
limits.
We do not want the debate to fundamentally call the digital euro into question
but rather to refine the specific details in such a way that opportunities can
be seized and, at the same time, risks can be avoided.
Opportunities of the digital euro:
1. European resilience and sovereignty in payments processing: as a
public-sector means of payment that is accepted across Europe, the digital
euro can reduce reliance on non-European card systems and big-tech wallets,
provided that a firmly European design is adopted and it is embedded in the
existing structures of banks and savings banks and can thus be directly
linked to customers’ existing accounts.
2. Supplement to cash and private-sector digital payments: as a central bank
digital currency, the digital euro can offer an additional, state-backed
payment option, especially when it is held in a digital wallet and can also
be used for e-commerce use cases (a compromise proposed by the European
Parliament’s main rapporteur for the digital euro, Fernando Navarrete). This
would further strengthen people’s freedom of choice in the payment sphere.
3. Catalyst for innovation in the European market: if integrated into banking
apps and designed in accordance with the compromises proposed by Navarrete
(see point 2), the digital euro can promote innovation in retail payments,
support new European payment ecosystems, and simplify cross-border payments.
> The burden of investment and the risk resulting from introducing the digital
> euro will be disproportionately borne by banks and savings banks.
Risks of the current configuration:
1. Risk of creating a gateway for US providers: in the configuration currently
planned, the digital euro provides US and other non-European tech and
payment companies with access to the customer interface, customer data and
payment infrastructure without any of the regulatory obligations and costs
that only European providers face. This goes against the objective of
digital sovereignty.
2. State parallel infrastructures weaken the market and innovation: the
European Central Bank (ECB) is planning not just two new sets of
infrastructure but also its own product for end customers (through an app).
An administrative body has neither the market experience nor the customer
access that banks and payment providers do. At the same time, the ECB is
removing the tried-and-tested allocation of roles between the central bank
and private sector.
Furthermore, the Eurosystem’s digital euro project will tie up urgently
required development capacity for many years and thereby further exacerbate
Europe’s competitive disadvantage. The burden of investment and the risk
resulting from introducing the digital euro will be disproportionately borne
by banks and savings banks. In any case, the banks and savings banks have
already developed a European market solution, Wero, which is currently
coming onto the market. The digital euro needs to strengthen rather than
weaken this European-led payment method.
3. Risks for financial stability and lending: without clear holding limits,
there is a risk of uncontrolled transfers of deposits from banks and savings
banks into holdings of digital euros. Deposits are the backbone of lending;
large-scale outflows would weaken both the funding of the real economy –
especially small and medium-sized enterprises – and the stability of the
system. Holding limits must therefore be based on usual payment needs and be
subject to binding regulations.
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Europe faces a growing dilemma: how to protect children online without breaking
digital privacy for everyone.
A new report from the Internet Watch Foundation found that 62 percent of
all child sexual abuse material discovered online last year was hosted on EU
servers. It’s a shocking statistic that has left Brussels locked in a heated
debate over how far new regulations should go — and whether scanning encrypted
messages could be justified, even at the cost of privacy and the risk of mass
surveillance.
Host Sarah Wheaton is joined by POLITICO’s Sam Clark, Eliza Gkritsi and Océane
Herrero to unpack Europe’s child safety regulations — and the balance between
protecting kids, protecting privacy and policing platforms. The conversation
also touches on the latest controversy out of France, involving Shein — the
fast-fashion giant caught selling childlike sex dolls online.
Then, from Europe’s digital dilemmas to Albania’s digital experiment: Gordon
Repinski, host of POLITICO’s Berlin Playbook podcast, sits down with Albanian
Prime Minister Edi Rama, who has appointed the world’s first artificial
intelligence minister — a virtual woman named Diella. Rama explains why he
believes Diella could help fight corruption, cut bureaucracy and speed up
Albania’s path toward EU membership.
PARIS — Economy Minister Roland Lescure warned Monday he could stop Shein from
selling its products of France after a consumer watchdog report accused the
Chinese-founded fast-fashion platform of selling “sex dolls with childlike
appearances.”
“For terrorist acts, drug trafficking and child pornography, the government has
the right to request banning access to the French market,” Lescure said. “These
horrible items are illegal.”
Over the weekend, France’s Directorate-General for Competition, Consumer Affairs
and Fraud Control (DGCCRF) issued a statement alleging that it had “found that
the e-commerce site SHEIN was selling child-like sex dolls.”
“Their description and categorization on the site leave little doubt as to the
child pornographic nature of the content,” the statement added.
Shein did not immediately respond to POLITICO’s request for comment.
Lescure said that he had filed a legal report on this matter and asked France’s
digital regulator Arcom, which is responsible for regulating “very large”
platforms like Shein under the European Digital Services Act, to look into the
matter.
France’s High Commissioner for Youth, Sarah El-Haïry, said Sunday that she would
convene “all major platforms” to understand how such products are put on the
market.
In 2021, then-Economy Minister Bruno Le Maire order popular search engines and
mobile app stores to delist another online marketplace, Wish, after several
reports from the DGCCRF. Wish was reauthorized a year later.
This article was first published by POLITICO in French and translated by Victor
Goury-Laffont.
PARIS — Le ministre de l’Economie a menacé Shein d’interdiction en France si
l’enquête judiciaire montrait que les comportements de la plateforme de
fast-fashion sont “répétés”. Roland Lescure était interrogé ce matin sur BFM TV
après que la direction générale de la Concurrence, de la Consommation et de la
Répression des fraudes (DGCCRF) a découvert, vendredi 31 octobre, que la
plateforme proposait à la vente des poupées sexuelles à l’effigie d’enfants.
L’administration avait alors immédiatement saisi le procureur de la République
et l’Arcom.
“Pour des actes terroristes, pour le trafic de stupéfiants et pour des objets
pédopornographiques, le gouvernement est en droit de demander l’interdiction de
l’accès au marché français”, a ajouté le ministre de l’Economie.
“Ces objets horribles sont illégaux”, a rappelé Roland Lescure, ajoutant avoir
saisi la justice et l’Arcom, qui est compétente en la matière puisque Shein a
été désignée l’an passée comme très grande plateforme en ligne (VLOP) dans le
cadre du règlement européen sur les services numériques (DSA).
La haut-commissaire à l’Enfance, Sarah El-Haïry, a pour sa part annoncé dimanche
son intention de convoquer “l’ensemble des grandes plateformes” pour comprendre
le circuit de commercialisation de ces produits.
En 2021, le site de vente en ligne Wish avait fait l’objet de mesures de
déréférencement à la demande de Bruno Le Maire, alors ministre de l’Economie.
Après plusieurs enquêtes de la DGCCRF sur la sécurité des produits proposés par
la plateforme, les principaux gestionnaires de moteurs de recherche et les
magasins d’applications mobiles avaient été appelés à dérérencer Wish, avant que
le site ne soit finalement à nouveau autorisé un an plus tard.
Contacté par POLITICO, Shein n’a pas donné suite au moment de la publication.
PARIS — France’s consumer protection agency has reported Chinese-founded online
fast-fashion platform Shein over the sale of childlike sex dolls.
“The French Directorate-General for Competition, Consumer Affairs, and Fraud
Control (DGCCRF) found that the e-commerce site Shein was selling sex dolls with
childlike appearances,” the agency said Saturday evening, adding that it had
“referred the matter to the public prosecutor.”
Shein is accused in France and beyond of selling goods that do not comply with
EU laws. In July, the DGCCRF fined the company €40 million for misleading
consumers about prices.
Back in May, the European Commission and consumer protection authorities had
also notified the platform of alleged violations of consumer protection law,
including fake discounts and misleading sustainability claims. EU Justice
Commissioner Michael McGrath later said he was determined to crack down on the
sale of goods on Temu and Shein that do not comply with EU regulations.
“As a reminder, the distribution of child pornography via an electronic
communications network is punishable by up to seven years’ imprisonment and a
fine of €100,000,” the French DGCCRF said in Saturday’s statement. The agency
also reached out to the French platform regulator Arcom, which is responsible
for regulating companies such as Shein.
The platform was ordered to take appropriate measures swiftly. Shein told Agence
France-Presse the items have been removed from the platform and an investigation
was launched to find out how the sellers managed to circumvent the control
processes.
The DGCCRF also reported to the prosecutor and Arcom that pornographic content
such as adult-looking sex dolls is available without filtering measures to
restrict access to minors, which is also against French law.
Shein is especially controversial in France: The most recent incident is the
platform’s arrival at the flagship department store BHV in Paris, which sparked
outrage among suppliers.
Meta and TikTok have dealt a blow to the European Commission’s social media rule
book, pressing the EU executive to codify how it calculates the number of users
on online platforms.
The General Court at the Court of Justice of the European Union sided with the
social media companies on Wednesday in their challenge of an annual supervisory
fee the European Union charges to pay for the enforcement of its tech rulebook,
the Digital Services Act (DSA).
It’s the first major court loss for the Commission over the DSA, which entered
into force in 2022 and can be wielded to fine social media and e-commerce
platforms up to 6 percent of their global annual revenue. The EU has yet to
finalize investigations under the law.
At the heart of the case are platforms’ disagreements with how the EU calculated
the fee. The Commission directly supervises “very large online platforms” with
over 45 million average monthly users in the bloc.
Meta and TikTok challenged the European Commission’s decisions imposing
so-called supervisory fees in 2024. These fees are meant to support the
Commission’s work overseeing the very platforms that pay it — an extension of
the “polluter pays” principle often used in environmental policy — and are
proportionate to the number of users platforms have in the EU.
The EU’s General Court said in its ruling the Commission should have passed a
separate set of rules about how users are calculated before determining the
fees. Judges gave the Commission a year to draft a text on how it calculates
platform users, or else potentially refund the platforms’ 2023 fees.
The EU executive has already been working on such rules, called a delegated act.
The Commission said the court merely ruled against it on procedure and not
substance. “The Court confirms our methodology is sound: no error in
calculation, no suspension of any payments, no problem with the principle of the
fee nor the amount,” said spokesperson Thomas Regnier.
Meta said in a statement that the judgement “will force the European Commission
to reassess the unfair methodology being used to calculate these DSA fees,”
adding it “looks forward to the flaws in the methodology being addressed.”
TikTok “welcomed” the decision and will “closely follow the development” of the
case, company spokesperson Paolo Ganino said.