Tech giants, including X and Google, are voicing concerns about the UK’s Online Safety Act, fearing high compliance costs may drive businesses away. The UK Government intends to levy charges based on global revenues to fund enforcement, which may stifle growth and service offerings. Ongoing discussions among lawmakers may revise aspects of the Act amidst international trade negotiations.
Tech companies, including Elon Musk’s X and Google, have expressed serious concerns regarding the financial burden posed by the UK’s forthcoming Online Safety Act. They caution that the compliance costs could lead to a withdrawal of global businesses from the UK market. These companies fear that hefty fees associated with the Act might compel them to reconsider continued operations in the country.
The UK Government plans to generate approximately £70 million each year to cover enforcement costs, imposing charges on major internet firms such as Meta, Google, Microsoft, Apple, and TikTok. The proposed fees could amount to 0.02% of their global revenues, raising significant alarm as these charges would reduce growth opportunities for platforms within the UK and limit service diversity for British users.
Google warned that the global revenue-based fee calculation could hinder growth prospects in the UK, echoing sentiments expressed by X that such charges may deter international companies from launching new services. Uber similarly cautioned that the compliance expenses from this legislation might inhibit business expansion or trigger exits from the UK market.
As Silicon Valley grapples with regulatory obstacles, UK lawmakers are facing escalating pressure to reassess the Online Safety Act. Ongoing discussions consider potential amendments to the Act’s provisions, particularly in relation to broader trade discussions with the United States. Nonetheless, Ofcom maintains that the fee structures are equitable, with the intention to finalize recommendations following a review of feedback received during consultations.
In summary, leading tech firms have articulated significant apprehensions regarding the financial implications of the UK’s Online Safety Act. The proposed compliance costs, based on global revenue, could deter business operations in the UK, limit growth potential, and reduce service offerings. Lawmakers face growing pressure to reconsider these stipulations amidst broader discussions with international trade partners.
Original Source: www.indexbox.io
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