⚖️ New Online Safety Act

Author

Liam Gill
December 24, 2024

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Understanding the Online Safety Act and Its Scope

The U.K.’s internet regulator, Ofcom, has released final guidelines under the Online Safety Act, introducing significant legal responsibilities for tech startups offering user-to-user or search services linked to U.K. users. Compliance deadlines start in March 2025, requiring businesses of all sizes to assess risks of illegal content, such as terrorism, hate speech, fraud, and child sexual abuse material. Importantly, the Act applies regardless of where a company is based, meaning startups outside the U.K. are also in scope. Non-compliance can result in fines up to 10% of global turnover or £18 million, alongside criminal liability for senior executives in serious breaches.

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Key Compliance Obligations for Startups

Tech startups must prioritize risk assessments, transparency, and operational safeguards to address illegal content on their platforms. Ofcom mandates core obligations, including content moderation systems for swift takedown of harmful material, user complaint mechanisms, and clear terms of service. Platforms relying on algorithms or AI will need to document how these systems manage harmful content. Startups catering to younger audiences face additional scrutiny, with new child safety requirements—such as age verification—coming into effect in 2025. Proactively investing in compliance now will help startups avoid rushed, costly changes later.

Next Steps: Preparation and Risk Mitigation

Founders must act swiftly to evaluate how the Online Safety Act applies to their services. Smaller startups, while facing fewer risks, are not exempt from obligations and should implement scalable compliance frameworks. Conducting legal reviews, adopting robust moderation tools, and staying updated on Ofcom’s evolving guidance are critical steps for preparation. By taking these actions, startups can mitigate regulatory risks while positioning themselves as trustworthy, compliant players in the U.K.’s increasingly regulated digital ecosystem.

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