Simplifying the Online Safety Act 2023: New Rules for Online Service Providers

The UK government has introduced a new set of regulations under the Online Safety Act 2023, focusing on how online service providers should notify Ofcom about certain financial aspects and pay related fees. This crucial step is part of ensuring a safer online environment, especially for children. Here’s what you need to know about these new regulations, set to take effect in 2025.

Key Points of the New Regulations

1. Who Needs to Report?

   • Online service providers, including social media and search engines, that are linked to the UK must notify Ofcom about their financial details unless exempted.
   • The regulations apply to services both within and outside the UK, meaning global companies with UK users are also covered.

2. What Do They Need to Report?

   • Providers must share information about their "qualifying worldwide revenue" (QWR) and pay fees if certain conditions are met. This includes details of all their regulated services and evidence supporting their QWR figures.

3. Why Is This Important?

   • The goal is to hold online services accountable for user safety, requiring them to assess and mitigate risks of harm to users.
   • These rules are part of a broader framework to manage online safety fees and notifications effectively.

The Process of Notification

• First Year Reporting: Companies must notify Ofcom in their first year of being eligible to pay fees.
• Subsequent Year Reporting: Notifications are required in any year that follows a non-fee-paying year or when transitioning from a fee-paying year to a non-fee-paying year.
• Evidence Requirement: Companies must provide accurate and comprehensive evidence supporting their QWR, signed off by a senior manager.

How Will This Be Implemented?

• Notifications must be submitted via an online portal or an alternative secure method if the portal is unavailable.
• Ofcom will provide guidance and examples of the necessary documentation, ensuring companies understand their obligations.

Impact and Further Developments

• Business Impact: The regulations aim to minimize the burden on businesses by requiring only essential information for fee administration.
• Threshold for Fees: A significant revenue threshold is set (recommended at £250 million), meaning smaller businesses and charities are unlikely to be affected.
• No Immediate Impact: Public sector services are generally exempt, focusing the changes on private sector providers.

Monitoring and Future Changes

• Ofcom plans to monitor the impact of these regulations and may adjust them based on practical experiences.
• While there’s no statutory review clause, Ofcom remains open to revisiting the legislation if necessary.

Overall, these regulations represent a significant step in ensuring that online service providers contribute to a safer digital space in the UK. Through clear reporting and accountability measures, the Online Safety Act 2023 aims to protect users from harm while balancing the needs of businesses.