Tech companies, including X, Google and Uber, have expressed concerns over the proposed funding mechanism for the Online Safety Act 2023 (OSA), which they claim could lead to services being withdrawn from the UK. Ofcom's proposal to raise £70 million annually through fees levied on internet companies, based on a percentage of their global revenue, has drawn criticism in responses to an Ofcom consultation.
Google warns that the approach risks "driving services" out of the UK, particularly those with low UK revenue, and discouraging new services from launching in the market. X echoed this sentiment, suggesting that the fee structure could "disincentivise global providers from introducing new regulated services" in the UK. Uber also joined the criticism, stating that the fees might encourage companies to leave the UK while others may be "dissuaded from launching their products". The core issue lies in the fact that the fees are calculated based on a company's worldwide revenue, not just its UK earnings. The proposal has sparked fears of disproportionate financial burdens. The timing of these objections coincides with a perceived shift in Silicon Valley's regulatory strategy under the Trump administration, where companies are adopting a more aggressive stance, potentially leveraging trade threats to influence international regulators.
£ - This article requires a subscription.
What is this page?
You are reading a summary article on the Privacy Newsfeed, a free resource for DPOs and other professionals with privacy or data protection responsibilities helping them stay informed of industry news all in one place. The information here is a brief snippet relating to a single piece of original content or several articles about a common topic or thread. The main contributor is listed in the top left-hand corner, just beneath the article title.
The Privacy Newsfeed monitors over 300 global publications, of which more than 5,750 summary articles have been posted to the online archive dating back to the beginning of 2020. A weekly roundup is available by email every Friday.
