Musk and Google warn UK on tech exodus over safety rules
Tech giants Google and Elon Musk’s X have warned that Britain’s new online safety laws could force global companies to reconsider their UK presence due to high compliance costs and regulatory overreach.
The Online Safety Act, which was passed under Rishi Sunak’s government, imposed strict rules requiring major platforms to introduce age verification and stop harmful content.
It announced potential fines of up to 10 per cent of annual revenue for non-compliance, which will soon take effect.
It also formed new criminal offences like cyber-flashing, sharing illegal images, and spreading harmful disinformation.
To enforce the law, the UK regulator Ofcom has proposed raising £70m annually by charging the largest tech firms with fees equating to 0.02 per cent of their global revenue.
This includes Meta, Google, Microsoft, Apple and TikTok.
Companies have argued that the fee structure is excessive, as it applies to global income, rather than UK-based earnings alone.
Google warned that the approach risks “stifling UK growth”, and could force companies to either scale back services or drive them out of the UK.
Similarly, X’s Musk argued that linking charges to global revenue could “disincentive global providers from introducing new regulated services into the UK”.
The tech behemoth and close adviser to Trump is a strong critic of the UK’s online safety regulations.
The Telegraph recently reported that the UK government may be open to modifying the law, if it becomes a sticking point in trade talks with the US.
Uber also criticised the plan, warning “it may have the effect of encouraging these companies from the UK”.
Silicon Valley’s broader concerns about over-regulation are intensifying under Donald Trump’s presidency, with Washington reportedly pressuring the UK government to soften parts of the law as part of trade negotiations.
An Ofcom spokesperson defended the proposals, insisting the rules were “fair” and “proportionate”, and aligned with the goal of ensuring compliance while keeping the UK as an “attractive and important market”.
The UK regulator is currently reviewing industry feedback before it will release its recommendations.
Meanwhile, the UK government’s AI safety institute has also faced criticism for shifting its focus away from ethics and bias towards security and national defence.