Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      Brentford in talks to host Shakhtar Donetsk Champions League fixtures

      Breaking news update with diverse business professionals discussing market trends in a modern conference room setting

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Brentford in talks to host Shakhtar Donetsk Champions League fixtures

      Breaking news update with diverse business professionals discussing market trends in a modern conference room setting

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      City festival with comedy and line dancing arrives in Square Mile

      Leadenhall Market vibrant during City Square Mile festival with bustling crowds and colorful decorations

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Monday 11 August 2025 2:57 pm  |  Updated:  Wednesday 13 August 2025 5:52 pm

Why the Online Safety Act has become a political nightmare

By: Saskia Koopman

Tech Reporter

Add as a preferred source on Google
The act's broad and vaguely defined scope has led to widespread and seemingly indiscriminate censorship. (Photo by Carl Court/Getty Images)
The act's broad and vaguely defined scope has led to widespread and seemingly indiscriminate censorship. (Photo by Carl Court/Getty Images)

The UK’s Online Safety Act, which came into force on 25th July, was conceived with the noble aim of protecting children from harmful online content.

It mandates that web service providers implement “highly effective” age verification measures to prevent minors from accessing material that promotes suicide, self-harm, eating disorders, or abusive behaviour, as well as sexually explicit content.

While public polling from YouGov initially showed strong support, with 80 per cent of the country backing stricter guardrails to prevent children from accessing pornography, the law’s implementation has triggered a wave of unintended consequences, a global backlash, and a fierce political debate.

The Online Safety Act was given royal assent as a conservative piece of legislation back on 26th October 2023, and came into full force on 25th July.

Play Video

The unintended cost of vague legislation

The act’s broad and vaguely defined scope has led to widespread and seemingly indiscriminate censorship.

Tech firms, fearing fines of up to £18m or 10 per cent of their global turnover, have taken a ‘better safe than sorry’ approach. This has resulted in the age-gating of an astonishing range of content.

In the weeks since the law took effect, users have reported being blocked from accessing Spotify playlists, Spongebob GIFs, and even an MP’s speech on child sexual abuse.

News and journalistic content, including breaking news footage and war coverage, has also in some cases been classified as ‘harmful’, and even Wikipedia has mounted a legal challenge, fearing its anonymous volunteers could have their privacy violated.

Reform UK has labelled this “monstrous censorship”, and a petition to repeal the act has garnered over half a million signatures.

The rise of VPNs and privacy concerns

The most significant and immediate reaction to the act has been a surge in the use of virtual private networks (VPNs).

These tools, which route internet traffic through other countries to bypass local restrictions, have seen a massive spike in popularity.

What’s more, a Cloudwards report analysing Google Trends data since the bill passed revealed that search queries for “how to get around age verification” surged by over 450,000 per cent, and “is VPN legal in the UK” saw an increase of 380,000 per cent.

The data suggests that rather than protecting children, the law may be pushing them toward less-regulated corners of the internet, raising further privacy risks.

Tech secretary Peter Kyle has insisted that a ban on VPNs is not being considered, but officials are keen to understand how they are being used, particularly by children.

Read more

‘Nobody’s getting a free pass’: Starmer warns Big Tech as social media ban looms

Prime Minister Keir Starmer addressing media at a press conference podium, discussing current governmental policies and in...

The act has also created a new unexpected market for age verification services, leading to both a boom for some firms and significant privacy concerns.

Persona, an ID verification platform, recently secured a $2bn valuation in the wake of the bill coming into force.

Yet, privacy campaigners argue that these laws create “honeypots” of valuable personal data, which could become targets for hackers.

Kate Ruane of the Centre for Democracy and Technology pointed out that when apps collect sensitive information like images or driver’s licenses, they risk breaches that endanger privacy and security.

“It also chills everyone’s desire to engage in all but the most anodyne conversations online”, she added.

The risk of identity theft and fraud is also heightened, as these databases could be a goldmine for criminals.

Experts like Fraser Mitchell, chief product officer at SmartSearch, have noted a surge in sophisticated fake ID services.

He said: “In today’s landscape, where criminals are agile and constantly evolving their methods, having such a robust system isn’t just about meeting compliance; it’s fundamental to fighting financial crime, protecting reputations, and building lasting trust with every interaction”.

A doomed bill?

The Online Safety Act has become a “political punchbag”, as one senior government official told the Financial Times.

This official, who remained anonymous, was quoted saying that companies were being “overzealous” in their application of the law, perhaps intentionally, to undermine its credibility.

The act faces criticism from across the political spectrum. Populist parties like Reform UK have decried it as “censorship”, while free speech advocates like venture capitalist Marc Andreessen have complained directly to Downing Street.

While the government has defended the law as a necessary step to protect children from harm, the botched rollout and public backlash have left it in a precarious position.

The act seems to have failed to achieve its stated goal, as public perception of its effectiveness has dropped, with many realising that a few clicks can easily circumvent age verification checks.

As a result, the government is now left to grapple with a law that is unpopular, seemingly ineffective, and has created a host of new problems it did not anticipate.

Read more

Starmer vows to end system ‘failing our kids’ ahead of expected social media ban

Keir Starmer speaking at London Tech Week conference, discussing innovation and technology advancements in the UK.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Tech
  • Business

People & Organisations

  • DSIT
  • fraud
  • identity theft
  • internet safety
  • Online Safety Act
  • Peter Kyle
  • social media
  • VPN
  • Yougov

Trending Articles

  • Who could be Andy Burnham’s Chancellor? 

  • Reeves’ new tax charge on cash ISAs faces fierce industry backlash

  • As it happened: Stocks recover after markets rocked by tech-sell off; US claims ‘good foundations’ of Iran deal

  • Coca-Cola brings in restructuring lineup over failed Costa sale

  • As it happened: FTSE 100 finishes higher as US-Iran talks progress and Starmer resigns; Space X shares fall after bond sale

More from CityAM

  • ‘Nobody’s getting a free pass’: Starmer warns Big Tech as social media ban looms

    Tech
    Prime Minister Keir Starmer addressing media at a press conference podium, discussing current governmental policies and in...
  • Starmer vows to end system ‘failing our kids’ ahead of expected social media ban

    Politics
    Keir Starmer speaking at London Tech Week conference, discussing innovation and technology advancements in the UK.
  • Musk brands UK a ‘police state’ as Big Tech rebels against Starmer’s social media ban

    Tech
    Getty Images logo on a digital screen, symbolizing media and photography industry presence in news and business contexts
  • VPN demand rockets as UK prepares for under-16 social media ban

    Tech
    Getty Images logo on a digital screen, symbolizing media and photography industry presence in news and business contexts
  • ‘Protecting children is right’: Starmer takes on Big Tech with social media ban for under-16s

    Politics
    Keir Starmer speaks in Downing Street
  • Starmer’s social media restrictions will mean the government can spy on every phone

    Opinion
    Keir Starmer at tech event discussing innovation and policy, surrounded by tech leaders and digital displays
  • London Tech Week sums up everything wrong with UK tech

    Opinion
    Attendees at London Tech Week 2026 conference networking and discussing innovations in technology and business
  • The EU has regulated itself out of the AI race but the UK is still in the game

    AI
    Keir Starmer and Ursula von der Leyen in discussion at a political summit meeting, emphasizing UK-EU relations.

CityAM Canada — business, markets and opinion for Canadian readers.

Sections

  • Business
  • Markets
  • Tech
  • AI
  • Economics
  • Opinion
  • Cities

Company

  • About
  • Contact

Legal

  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 CityAM Canada. All rights reserved.
Terms · Privacy · Cookies