Pictfor

On Wednesday 27 February, PICTFOR hosted a Digital Regulation and Cooperation Forum in the House of Lords.

Lord Clement-Jones, PICTFOR Officer and Liberal Democrat spokesperson in the House of Lords for Science, Innovation and Technology, opened the meeting by welcoming panellists and attendees. He highlighted the Government’s recent request for regulators to propose growth-promoting initiatives. As part of this effort, the Information Commissioner’s Office (ICO) submitted a letter to the Prime Minister on January 16 outlining its proposals, and Ofcom submitted a similar letter. Lord Clement-Jones expressed a desire to explore the implications of these recommendations and discuss the regulators’ wider priorities during the session. 

Melanie Dawes, CEO of Ofcom, began by outlining Ofcom’s role as the communications regulator, overseeing telecoms, media, and online services. She outlined Ofcom’s primary duty – to further the interests of citizens and consumers while fostering investment, innovation, and competition. She noted that growth has also always been a core duty for Ofcom. 

Ms Dawes highlighted how significantly the industry has transformed over the past forty years, creating a fundamentally different regulatory environment compared to sectors like water or energy. She explained that communication has evolved from primarily landline phones forty years ago to today’s multiple digital communication methods. Similarly, the broadcasting landscape has transformed significantly, with the introduction of American streaming services and an increase in television channels.  

Dawes set out Ofcom’s key regulatory priorities for 2025 as follows: 

1. Telecoms Access Review:  

• Setting wholesale pricing structures for the next five years. 
• Continuing to encourage full-fibre investment through commercial incentives. 

2. Public Service Broadcasting:  

• Evaluating areas where additional regulation may be necessary to maintain the balance between competition and consumer protection. 

3. Spectrum Allocation: 

• Focusing on innovation and expansion of 4G satellite technology 
• Recognising spectrum allocation’s importance in fostering technological growth 

4. Implementation of the Online Safety Act: 

• A two-year extension has been granted to ensure essential legal clarity. 

• Aiming to drive up industry standards and create a level playing field. 

• Developing a regulatory framework to encourage innovation, particularly for British firms, without stifling smaller but low-risk enterprises. 

John Edwards, UK Information Commissioner at the the Information Commissioners Office (ICO), then outlined key principles concerning economic growth and regulation from ICO’s perspective.He emphasised that economic activity fundamentally depends on trust, which is even more critical in the digital economy. Regulatory certainty, he stated, is essential for building and maintaining this trust. He added that the UK’s legislative framework is technology-neutral and principle-based, allowing for adaptation without the need for constant legal amendments. 

Mr Edwards stressed the need to reduce uncertainty in the application of legislation, in order to minimise negative impacts on growth, adding that addressing regulatory issues proactively can achieve efficiency improvements. 

Mr Edwards then set out the ICO’s mechanisms for promoting growth. 

• Regulatory Certainty in AI: 

• • The ICO would develop a code of practice on automated decision-making. 

• • This would look to reduce costs for small businesses and encourage innovation through regulatory sandbox initiatives. 

• • The ICO would consider a broader regulatory model to enable companies to take calculated risks. 

• Enhancing Online Advertising: 

• • The ICO would identify opportunities to refine regulations to stimulate further growth in this sector. 

• International Data Transfers: 

• • The ICO would look to streamline this process to facilitate economic activity. 

• Reducing Compliance Costs: 

• • The ICO would look to work in partnership with industry and the Government to cut the costs associated with engaging multiple regulators. 

Mr Edwards acknowledged that a purely reactive regulatory approach would be unsustainable as it would consume all available capacity. Instead, he advocated allocating resources to areas with the highest potential societal impact. 

This involves prioritising discretionary powers where regulators have domain control and can actively shape outcomes. For example, he expressed concern about the speed of market deployment of AI, necessitating a level of regulatory ‘friction’ to identify and mitigate potential harms. He also recommended evaluating significant regulatory adjustments to improve transparency and consumer protection regarding online advertising and personal data collection. 

Mr Edwards concluded by advocating for the UK to define a ‘third way’ in regulatory approaches, striking a balance between strict prescriptive regulations and flexible, principle-based frameworks. This approach, he suggested, could position the UK as an attractive environment for US firms to pilot regulatory strategies before implementing them in other, more restrictive markets. 

Iqbal Mohammad MP asked what protections Ofcom are providing to protect citizens from harmful content with origins outside of the UK. He also raised concerns about ‘fake news’. Baroness Penn also raised concerns about the changing international context, and the difficulties of regulating for content that originates from outside the UK.  

Melanie Dawes, CEO of Ofcom, acknowledged the difficulties of regulating on a global scale, and commented on the challenges of regulating across multiple platforms. She told the audience that, in its current form, the Online Safety Act does not make provisions to regulate speech on social media – it can only take action in regards to the platforms, ensuring that they are meeting their duty to protect their users from harmful content. She explained that Ofcom is weeks away from beginning to enforce this.  

Lord Thomas of Cwmgiedd asked the regulators what is being done, and what can be done, to ensure SMEs are supported in adhering to new regulation such as the Online Safety Act. He also asked the regulators what they can do to encourage the simplification the law in order to encourage growth. Chris Francis, Director of Government Relations for SAP, also asked the regulators to clarify the work they are doing to reduce friction and help SMEs. 

Melanie Dawes, CEO of Ofcom, highlighted the importance of principles-based regulation to ensure that small businesses are given space to thrive, and in encouraging growth. She recognised that this may create a lack of clarity for some businesses but asserted that as regulators such as Ofcom can only interpret, rather than set, regulation, it was important to consider how they can help reduce the cost of adhering to regulation where possible.  

Baroness Penn asked the panel about the work they are doing to ensure data protection standards are upheld, particularly in relation to minors. 

John Edwards, UK Information Commissioner, detailed the work being done to prevent and regulate online tracking, including making it easier to reject cookies, and preventing the forced exchange of data through ‘consent to cookies or pay’ for use of a site. He explained that the ICO have set out principles where sites will have to assess if there is a power imbalance. That being said, the ICO had found no evidence of the vulnerable in society being exploited as a result of these methods, he said. Mr Edwards described transparency as “the most powerful instrument in the regulatory toolbox,” focusing on informing users about data sharing consequences and providing genuine choice about online actions.  

On the subject of international standards, both regulators commented that where there are internationally accepted standards, they would be applied. They also recognised, however, that there were many challenges, as politics leans against international collaboration. 

Amanda Brock, CEO of Open UK, commented on the need to ensure standards are open in delivery and accessible to all. She called for the use of software tooling as opposed to strong standards.  

Melanie Dawes agreed that there was a great need for online tools and better user endowment.  

When concerns were raised about internet users under the age of 18 by a number of members of the audience, particularly in relation to the age of consent for data sharing, Ms Dawes explained that Ofcom considers all users under 18 as children in online contexts. Rather than focusing on prohibition, regulators aim to create safer online spaces she said. Ms Dawes explained that Ofcom is working to ensure platforms provide age-appropriate experiences for under-18s, creating what she described as a “training ground” for younger users rather than allowing sudden unrestricted access at a specific age. 

Mr Edwards explained that the ICO has already taken enforcement action, including fining TikTok for failing to verify parental consent for under-13 users, and will continue to do so. He noted that the Age-Appropriate Design Code has driven significant product changes, such as Instagram introducing “Insta Teens.” He added that this code has prompted more product modifications than GDPR regulations, indicating progress in making online environments safer for children. 

Both regulators agreed that age assurance and verification was identified as a Year 1 priority in implementing the Online Safety Act. 

When asked about the role of parents, both regulators acknowledged the importance of parental oversight and controls, but recognised these are insufficient alone. Emphasis was placed on helping children learn responsible device use, with regulators stepping in where parental oversight may be lacking. 

In response to questions about GenAI and misinformation from Claire Penketh from BCS, The Chartered Institute for IT, it was clarified that the Online Safety Act does not regulate social media for disinformation, focusing instead on illegal content. Regulators noted they lack specific tools to address “fake news,” despite acknowledging this represents a significant challenge as audience behaviours evolve. 

Ms Dawes highlighted the increasingly fragmented media landscape, noting that 2024 marked the first year more people obtained news from social media than traditional sources. While recognising this shift presents important challenges, she emphasised the need to balance regulation with freedom of expression considerations, particularly across vast platforms. 

Addressing GenAI and fake news, Edwards reiterated his belief that transparency is the “most powerful instrument in the regulatory toolbox,” emphasising the importance of informing users about the consequences of their actions, including sharing GenAI and fake news stories. This approach aims to provide users with genuine choice by clearly communicating the implications of their online activities. 

Many thanks to members for their contributions. 

This is not an official publication of the House of Commons or the House of Lords. It has not been approved by either House or its committees. All-Party Parliamentary Groups are informal groups of Members of both Houses with a common interest in particular issues. The views expressed in this report are those of the group.