The #OnlineSafetyAct poses "substantial risks" to the economy, warns former Conservative Cabinet Minister Sir David Davis. The regulation, as it stands, could smother small tech businesses that lack the resources of the big Californian tech giants.
Expected to take effect by the end of the year, the legislation aims to protect children from harmful content such as suicide, self-harm, and pornography. However, in a letter to Peter Kyle, Secretary of State for Science, Technology, and Innovation, Davis argued that the Act could create “significant regulatory uncertainty for companies,” especially smaller firms.
“While the OSA intended purpose, to make the UK the safest place to be online, is welcomed, its current design and scope pose substantial risks to our economy and society,” Davis wrote, as reported by The Telegraph.
Ofcom's figures suggest that smaller websites could face costs of up to £45 per user to comply with the new regulations, compared to just 25p to 50p per user for larger platforms.
It could however be argued that per-person metrics are an inadequate gauge of the real-world impact on businesses—especially small tech companies that manage large volumes of traffic. These businesses face significant challenges in moderating harmful content and keeping up with the demands of the Online Safety Act, without the vast resources available to tech giants like Facebook, Google, or TikTok.
Many small and medium-sized companies with lean teams operate platforms that handle vast amounts of user interaction and content, yet they’re expected to meet the same standards as larger firms. The issue is not how many employees these companies have but rather the volume of content they host and the risks associated with it. This one-size-fits-all regulatory approach risks smothering innovation in the UK’s growing tech sector.
This is where solutions like Streamshield.ai offer a lifeline. The platform allows all businesses to implement scalable, real-time content moderation and risk management tools that ensure compliance with the OSA at a fraction of the cost of traditional moderation solutions. Rather than investing in large teams or expensive systems, businesses can leverage AI solutions that efficiently filter harmful content, protect users, and meet regulatory demands.
By investing in tools like StreamShield.ai, companies can ensure they comply with the regulations and avoid penalties that come with non-compliance. The technology offers a fantastic ROI for companies who manage high volumes of content with minimal resources. It provides an alternative to per-person cost models, focusing instead on content volume and risk mitigation, which are far more relevant metrics in today’s digital landscape.
Technologies like streamshield.ai will be crucial in helping small and mid-sized businesses not just survive, but thrive under the new rules. Department for Science, Innovation and Technology Digital Trust and Safety Partnership
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