Ireland’s Ties with Big Tech Under Fire Following Meta-Funded EU Appeals Office Launch

Ireland's close relationship with large tech companies is facing renewed scrutiny as the country’s media regulator, Coimisiún na Meán, approved a $15 million funding contribution from Meta's Oversight Board Trust for the establishment of the new Appeal Centre Europe. This office, aimed at handling EU user disputes with social media companies, will provide European citizens a streamlined way to contest issues like content moderation and account restrictions, as required under the EU's Digital Services Act (DSA). The DSA, effective since last year, mandates transparency and accountability for major tech platforms, including Meta’s Facebook and Instagram, as well as YouTube and TikTok.

Accepting a substantial financial contribution from Meta, one of the primary entities the Appeal Centre will oversee, raises potential conflicts regarding the centre's independence. However, the issue does not end there; several top officials in the Appeals Centre have direct or prior connections to Meta. All three nonexecutive directors—Catherine O'Regan, Cherine Chalaby, and Marie Wieck—are trustees of Meta's Oversight Board Trust. This board, while established by Meta as an ostensibly independent oversight body, has previously faced criticism for both its limited influence and slow decision-making processes.

In addition to the directors, Appeals Centre CEO Thomas Hughes previously served as administration director for Meta’s Oversight Board. While the DSA requires that out-of-court settlement bodies maintain independence, it lacks explicit prohibitions against initial funding from companies under its regulation. The Irish regulator, for its part, defended its decision to approve the setup, saying it was “satisfied that the processes and procedures in place and the mitigating measures implemented by Appeals Centre Europe are sufficient to demonstrate compliance with the independence condition.” Coimisiún na Meán pledged to monitor the centre's adherence to certification requirements, noting it could revoke the certification if independence standards are compromised.

One of the centre's initial challenges will be managing perceptions of impartiality, according to Sofia Tirini, legal manager at Access Partnership, a technology advisory firm. “Given its initial funding connection to Meta, and that part of its staff used to be part of this body, the Appeals Centre will have to build trust among users to ensure and demonstrate its independence,” she stated.

The Appeals Centre has committed that its remaining nonexecutive appointments will include individuals with no industry ties. When Meta’s Oversight Board was created in 2018, it was lauded as a new model for internet governance, but over the years, it has drawn criticism for its dependency on Meta's funding and its slow processing times. Earlier this year, Meta agreed to maintain the board's funding at an annual budget of $35 million through 2027, amid reports that Meta had pressured the board to cut costs. Despite these financial ties, Oversight Board Trust chair Stephen Neal emphasized that “the two bodies will operate independently of one another and play distinct, but complementary, roles,” while assuring that no further grants would be issued to the Appeals Centre.

Although Meta provided initial funding, the Appeals Centre’s future revenue model involves fees from social media companies and EU users alike. EU users will pay €5 for each appeal, which is refunded if they win. Meanwhile, platforms like Facebook, YouTube, and TikTok will be charged a minimum of €90 per case. While these reviews must be completed within 90 days, the decisions are non-binding, and companies may opt out of participating, possibly choosing to face data protection regulators instead.

Initially, the Appeals Centre’s scope will cover Facebook, YouTube, and TikTok; however, it remains unclear how the centre will handle complaints about other designated “Very Large Online Platforms” under the DSA, including LinkedIn and Snapchat. Ireland's data regulator fined LinkedIn €310 million last month for violating the General Data Protection Regulation (GDPR) in its data processing and advertising practices, adding to the regulatory challenges ahead.

This latest development is not the first time Ireland’s ties with Big Tech have drawn criticism. In 2017, the European Commission took Ireland to the European Court of Justice for not collecting €13 billion in back taxes from Apple. After years of litigation, Apple was ordered in September to pay the outstanding sum, which Ireland had initially refused to accept. As the EU’s lead authority for several tech giants, Ireland has levied significant fines on Meta, including €1.2 billion in 2023, but privacy advocates and other EU regulators argue that Ireland’s enforcement is often lenient and protracted.

By fLEXI tEAM