The opportunity of regulation
The changing face of Big Tech
The publication of Rana Foroohar’s book “Don't Be Evil” in 2018 felt indicative of shifting attitudes towards tech companies. Gone were the days of idolising the idea of moving fast and breaking things. The self-generated image that tech giants had been presenting for years began to dissipate, as voices like Foroohar pointed out that these companies do not necessarily herald a brighter future in which all communities are connected and everyone is empowered to live their best life. They are, quite simply, big businesses, exploiting significant resources to generate enormous profits. But once the allure surrounding big tech had begun to evaporate, the question of what to do about it remained.
Lessons from history
In the 18th and 19th centuries, big businesses with an equivalent social impact to the tech giants of today emerged. They generated enormous wealth, burning through huge quantities of natural resources to make a wide range of products more accessible to the masses. These companies, too, “broke things.” Steam engines tore through the countryside; young children performed back-breaking labour on production lines. Before long, prominent cultural figures like Turner and Dickens began drawing attention to the toll of the industrial revolution on the countryside and the living conditions of the working class.
Slowly but surely, people took notice. Politicians, trade unions, cooperatives, and campaigners worked to impose restrictions on the most reckless practices of big business. The weekend was born, exploitative labour practices were phased out, environmental regulations were introduced.
Today, the legacy industries that were born during the industrial revolution brag not of breaking, but of mending. Oil giants create much fanfare around their investments in renewable power. Car companies race to make fossil fuels redundant. From clothes to cutlery to coffee, companies have realised that demonstrating respect towards workers and the environment is not only the right thing to do, it is also good business.
In “Don’t Be Evil,” Foroohar joined thinkers like Shoshana Zuboff in arguing that it is time to be bold and hold Big Tech to account, so that they too begin to act more responsibly. These companies may have connected the world and provided us with tailored online experiences, but this has come at significant costs. Our privacy has been infringed; children have been placed at risk of significant harm. Governments around the world have begun to take note.
The role of government
In 2018, the same year that “Don’t Be Evil” was published, the General Data Protection Regulation (GDPR) came into force. While the scope of the GDPR is not limited to tech companies, it has them firmly in its sights, requiring them to identify a lawful basis for data processing activities and introducing an extensive number of requirements designed to protect and empower users of their services. While GDPR has its critics, it provided internet users with far greater transparency over how their personal data was being used.
In the years that followed, a raft of legislation focused on online harms has been passed, albeit at a frustratingly slow pace for many campaigners. The rules set out in the EU’s Digital Services Act (DSA) have applied to all platforms since February 2024. In the UK, the Online Safety Act took until 2023 to make its way through Parliament and become law, becoming the most amended Bill in the UK’s history in the process. Now, Ofcom is responsible for its implementation, issuing Codes of Practice and Guidance to help regulated services comply with the duties set out in the Act.
At the heart of both legislative frameworks are measures to improve transparency around tech platforms. Regulators will be able to request information about the systems and processes online services are using to keep their users safe, with heavy penalties for service providers who fail to respond or respond untruthfully.
The Online Safety Act’s impact on SMEs
But the Online Safety Act is not restricted in scope to Big Tech. In fact, Ofcom estimates that over 100,000 services will fall within scope of the Act. Each of these services will need to perform risk assessments, understand their obligations under the Act, and take steps to mitigate the risk of harm on their platforms.
Just as online services need to understand regulation, so too do regulators need to understand online services. For regulation to succeed, examples of good practice need to be highlighted to the regulator so that they can set meaningful and proportionate expectations. Ofcom is facilitating this through several consultations , allowing stakeholders to respond to proposed measures that online services can use to keep their users safe.
Failing to respond to Ofcom’s consultations would be a missed opportunity for online services, civil society, and academia to contribute to the UK’s emerging digital regulatory landscape. With thousands of pages of consultation documents to work through, however, some SME’s may need support ensuring their perspective is heard.
But engaging proactively with online safety regulation is likely to pay off. Online services struggling to compete in a crowded field can use regulation as an opportunity to build a positive brand. A recent report from Duco highlighted that increasing media scrutiny, brand safety concerns, and user expectations have “led to an era of heightened platform accountability from the public.” This heightened accountability will be turbo-charged as regulators embrace their new transparency powers.
Some platforms may fall foul of the regulator, and face significant financial penalties and brand damage as a result. On the other hand, platforms which engage proactively with regulation and clearly communicate the steps they are taking to protect their users will be able to build brand loyalty and a deeper sense of community.
With Ofcom’s next consultation on proposed measures to protect children set to appear shortly, providers of online services should seize this opportunity to distinguish themselves from the crowd.
If you need support responding to Ofcom’s consultations, or would like to lean in to the opportunity presented by the shifting regulatory landscape, illuminate tech are here to help. Get in touch today.
