Tech heavyweights Google and Elon Musk's X have voiced concerns that the º£½ÇÊÓƵ's new online safety laws could prompt international companies to rethink their º£½ÇÊÓƵ operations due to high compliance costs and regulatory overreach.
The Online Safety Act, enacted under Rishi Sunak's government, imposes stringent rules requiring major platforms to implement age verification measures and halt harmful content, as reported by .
It has introduced potential fines of up to 10% of annual turnover for non-compliance, which will soon come into effect. The legislation also establishes new criminal offences such as cyber-flashing, sharing illegal images, and disseminating harmful disinformation.
To enforce the law, º£½ÇÊÓƵ regulator Ofcom has proposed raising £70m annually by charging the largest tech firms fees equivalent to 0.02% of their global revenue. This includes Meta, Google, Microsoft, Apple and TikTok.
Companies have argued that the fee structure is excessive, as it applies to global income, rather than solely º£½ÇÊÓƵ-based earnings. Google cautioned that this approach risks "stifling º£½ÇÊÓƵ growth", and could compel companies to either scale back services or exit the º£½ÇÊÓƵ.
Similarly, X's Musk contended that tying charges to global revenue could "disincentive global providers from introducing new regulated services into the º£½ÇÊÓƵ". The tech titan and close adviser to Trump is a vocal critic of the º£½ÇÊÓƵ's online safety regulations.
The Telegraph has recently brought to light that º£½ÇÊÓƵ officials may be amenable to adjusting legislation should it become a contentious issue in trade discussions with the US. A representative from Uber voiced dissatisfaction with the plan, cautioning that "it may have the effect of encouraging these companies from the º£½ÇÊÓƵ".
Amidst Donald Trump's tenure, Silicon Valley's apprehension regarding stringent regulation is growing, with claims that Washington is exerting pressure on the British government to ease specific aspects of the law during trade negotiations.
An Ofcom spokesperson defended the proposed rules, maintaining that they are "fair" and "proportionate", and concur with the objective of fostering compliance while positioning the º£½ÇÊÓƵ as a significant and appealing market.
Presently, Ofcom is analysing feedback from the industry prior to announcing its guidance. In related developments, the º£½ÇÊÓƵ government's AI safety institute has drawn criticism for diverting its attention from ethics and bias to prioritise security and national defence issues.
