Policy paper

Digital Regulation: driving growth and unlocking innovation

Updated 10 October 2023

Ministerial foreword

Digital technologies have transformed our economy, our society and our daily lives. They are now a fundamental part of our everyday existence, providing goods and services that even a decade ago seemed unimaginable. The challenge for government is to keep pace with the dramatic speed of technological change: unlocking the enormous benefits of digital technologies, while minimising the risks they present both now and in the future.

Countries around the world are grappling with this challenge, and the UK is perfectly placed to lead the way on this vital issue. I have been clear that we will take an unashamedly pro-tech approach. Some of the biggest breakthroughs in tech have taken place thanks to this country — from the creation of the World Wide Web to huge leaps forward in Artificial Intelligence. At the same time, our strong rule of law, world-class industrial base and access to talent have made the UK a historic hub for international investment.

I am therefore pleased to publish this Plan for Digital Regulation, which sets out a new, ground-breaking approach to the way we govern tech in this country. The Plan shows how we will drive a proportionate and agile regulatory approach, removing unnecessary burdens wherever we find them and offering clarity and confidence to businesses and consumers. It brings together all the work we are doing across the government in this area under a single coherent vision.

Innovation is at the heart of this Plan. We want to encourage it wherever we can, so that we can use tech as an engine for growth. This will create thriving markets that will cement our position as the tech capital of Europe.

Digital technologies are key to our future prosperity, but we must also make sure that they are developed responsibly so we protect society and uphold the rights of our citizens. This Plan sets out how we will achieve that balance, as well as some practical steps the government is taking right now to seize the opportunities of the digital revolution. In doing so, it builds on our Ten Tech Priorities — particularly the ambitions to keep the UK safe and secure online, to fuel a new era of startups and scaleups, and to lead the global conversation on tech. I expect us to take a deregulatory approach overall, whilst safeguarding consumer protections. I will shortly publish a plan for a pro-growth data regime that builds on these priorities and underpins trust in the responsible use of data, as well as a consultation on the establishment of a new pro-competition regime which will drive innovation and growth across digital markets.

Now that we have exited the EU, we have a fresh opportunity to set the global path for digital regulation. With this Plan, we are setting a path that is pro-innovation. I see this Plan not as the final answer, but as the start of a conversation. I look forward to hearing views from across business, civil society, academia and beyond, as we work together to set the right rules for the next chapter in tech.


The Rt Hon Oliver Dowden
Secretary of State for Digital, Culture, Media and Sport

Executive summary

As digital technologies underpin more and more of our economy, society and daily lives, we need to make sure the rules that govern them keep pace so we drive growth and unlock innovation. These technologies have been an incredible force for change — not least during the COVID-19 pandemic, where more people than ever before have been using them[footnote 1] — but also in the way they boost prosperity and catalyse productivity across the economy. They have brought ground-breaking products and services into our homes and workplaces at remarkable speed, and the UK is leading the way in much of this.

Alongside these huge opportunities, however, digital technologies also bring new and accelerated risks. As digital technologies play an increasingly systemic role, our regulatory systems need to adapt to the ways they can be exploited to threaten our critical infrastructure, fundamental human rights, and consumer choice.

Now that we have exited the EU, we have a fresh opportunity to build on our world-leading regulatory regime by setting out a pro-innovation approach to regulating digital technologies - one that drives prosperity and builds trust in their use. A clear cross-government effort is vital in order to deliver on our three key objectives:

  • To drive growth, we will promote competition and innovation across the digital sector.
  • To ensure this growth and innovation does not harm citizens or businesses, we will keep the UK safe and secure online.
  • To protect our fundamental rights and freedoms, we will shape a digital economy that promotes a flourishing, democratic society.

To ensure the government delivers on this vision we also set out clear principles for how we will design and implement digital regulation. Where necessary to intervene, government must: (i) actively promote innovation; (ii) achieve forward-looking and coherent outcomes; and (iii) address international opportunities and challenges.

The government is committed to proportionate regulation and, where appropriate, deregulation. This Plan starts the conversation about how the government can achieve these goals in the digital economy and put our principles for digital regulation into practice. We will explore a range of mechanisms, including improving the policymaking process in government, examining changes to the legal duties of regulators to encourage coherence, and promoting our approach through bilateral and multilateral relationships. Our response to the risks of digital technologies will be proportionate and will not overshadow the huge benefits that digital technologies bring.

Our approach to digital regulation builds on the UK’s strong international reputation for rule of law and technological breakthroughs,[footnote 2] while recognising that many digital opportunities and harms are inherently international.[footnote 3]

It also builds on wider work that government is leading, including the Ten Tech Priorities, which set out ambitions to support a world-class digital technology sector, keep the UK safe and secure online, and fuel a new era of startups and scaleups. It also complements the Integrated Review and National Data Strategy and will be supported by the upcoming Innovation Strategy, AI Strategy, Digital Strategy and National Cyber Strategy. It responds to many of the themes raised in the report of the independent Taskforce on Innovation, Growth and Regulatory Reform.

The fast-moving nature and complexities of digital technologies means it is vital we draw from expertise across the tech sector, businesses in other sectors, civil society, academia and beyond. We therefore welcome views on our approach as we enter the next chapter in shaping the rules that govern digital technologies - your expertise will be crucial to our success.

Context

Digital technologies are the engine driving the UK’s economic growth. The digital sector contributed £151bn in output and accounted for 1.6 million jobs in 2019.[footnote 4][footnote 5] Over 34,000 new tech businesses were created in 2018 alone,[footnote 6] and the UK attracted more international venture capital investment into technology businesses in 2020 than France and Germany combined.[footnote 7] This was driven home during the COVID-19 pandemic, where since March 2020, six in ten UK consumers reported an increase in their household use of smart devices, and the proportion of homes without internet almost halved in the last year.[footnote 8][footnote 9]

With these benefits come new and enhanced risks. Half of people in the UK believe it’s ‘part and parcel’ of being online that people will try to cheat or harm them in some way.[footnote 10] Online mis- and dis-information remains prevalent, including during the COVID-19 pandemic.[footnote 11] Security needs to be embedded into innovation and planning. 39% of businesses and 26% of charities report having cyber security breaches or attacks in the last 12 months, as a result of which one in five lost money, data or other assets.[footnote 12] Critical industries, schools and local governments are also being targeted.[footnote 13] As digital technologies become more integral to the wider economy and society, vulnerabilities in one organisation can lead to huge disruption elsewhere.

Digital businesses are operating in many cases without appropriate guardrails - the existing rules and norms which have guided business activity were in many cases not designed for modern technologies and business models.[footnote 14] Government therefore needs to work with companies to put these guardrails in place, in order to give clarity and certainty to businesses and consumers alike. Digital technologies and business models also disrupt established rules and norms because they combine distinct features - such as powerful data processing capabilities, speed of innovation and growth, horizontal integration, and businesses starting and scaling quickly.[footnote 15] Some have argued these features have allowed the creation of ecosystems which provide a range of essential and ubiquitous services similar to that of public utilities - from the underlying infrastructure of the internet to broader services for businesses and consumers.[footnote 16] Others dispute this, arguing that seeing digital services as public utilities mis-characterises the nature of their business models and the markets they operate in, and that greater competition is necessary and possible, provided the right policies are in place.[footnote 17] Our regulatory system needs to adapt to these complexities.

Well-designed regulation can have a powerful effect on driving growth and shaping a thriving digital economy and society, whereas poorly-designed or restrictive regulation can dampen innovation.[footnote 18][footnote 19] Nowhere is this more important than digital technologies, where it is crucial for the government to deploy regulation in ways that enable the potential benefits of new innovations, and provide certainty to businesses and investors alike.[footnote 20][footnote 21] The right rules can help people trust the products and services they’re using, which in turn can drive take-up and further consumption, investment and innovation.

The success of the UK’s digital sector and regulatory regime is also inextricably linked to the wider world - ideas, talent, research and investment flow across borders, and our ability to invent and market innovative technology is critical. The pace of emerging technology development has created opportunities for frontrunners — both states and non-state actors such as large technology firms — to shape the norms of digital technologies.[footnote 22]

As set out in the Integrated Review of Security, Defence, Development and Foreign Policy, it is therefore vital to use the levers at government’s disposal to lead positive change abroad as well as at home. British companies will benefit from the UK being at the forefront of global technology governance.

What do we mean by ‘digital regulation’?

‘Digital regulation’ refers to the range of regulatory tools that government, regulators, businesses, and other bodies use to manage the impact that digital technologies and activities can have on individuals, companies, the economy and society. These include norms, self-regulation, statutory codes of conduct, and rules in primary legislation. We use these tools to promote outcomes that the market alone cannot achieve efficiently.

Non-regulatory tools can complement or provide alternatives to ‘traditional’ regulation. This includes industry-led technical standards, which benefit from global technical expertise and best practice.[footnote 23]

This is particularly important for fast-moving digital markets, where the government will continue to test new approaches to ensure our interventions are as up to date as possible.

Digital technologies and activities demand a distinct regulatory approach. This is because they have distinctive features which make digital businesses and applications unique and innovative, but may also challenge how we address risks to consumers and wider society.[footnote 24]

These features include, but are not limited to:[footnote 25]

  • the accumulation, processing and portability of personal data
  • oversight, accountability and verification of digital content
  • transparency and use of advanced data analytics and algorithms
  • scale, scope and network effects of digital businesses
  • the relative ease and anonymity of disruption to digital services
  • the global nature of data and digital
  • the critical role of digital infrastructure and networks

For example, companies may collect large amounts of personal data on applications enabled by the global internet, to be processed using algorithms, and applied across a range of potential business purposes. This incentivises businesses to expand across a wide range of sectors, such as in health, finance, advertising, or communications, all generating data which can be used for a wide range of purposes.[footnote 26]

Our regulatory approach needs to respond to these distinct challenges by being holistic, flexible and adaptable to change - guided by an overarching set of principles and objectives to ensure consistency and clarity.

Our digital regulation principles

Digital technologies are challenging existing regulatory structures, and governments around the world are taking steps to respond. To ensure a coherent, innovation-friendly and streamlined regulatory landscape, we will establish new principles to guide our overall approach to digital regulation. We want to promote competition and innovation, keep the UK safe and secure, and promote a flourishing, democratic society. One of the UK’s strengths has been a business environment predicated on stability and trust in public institutions[footnote 27] — we need to build on this to seize the benefits of the digital age.

By setting out the government’s approach, we want to provide businesses with certainty, avoid unnecessary layers of regulation, and give people the confidence they need to engage with digital technologies safely. Setting out a clear, proportionate environment for high-priority issues will allow investors and businesses to focus on pursuing the innovations that have positively affected our economy and society, as well as build consumer trust. In Annex A we provide an overview of forthcoming digital regulation.

Our vision

To set direction and drive the outcomes we want to see, the government will pursue a vision for digital regulation, underpinned by three key objectives. These objectives will guide the way we regulate digital technologies and mean the government will focus its interventions on the most pressing issues of the future:

Our vision is to drive prosperity through our regulation of digital technologies, while minimising harms to the economy, security and society

Promoting competition and innovation Keeping the UK safe and secure online Promoting a flourishing, democratic society
- Digital markets are competitive

- Consumers trust they are treated fairly and can exercise choice over the services they access

- We have a vibrant digital economy, where startups and scaleups can prosper (alongside other firms)

- Businesses and other organisations are able to use data innovatively
- Citizens are empowered to be safe online, and trust they are protected from online harms beyond their control

- Organisations have the capabilities and resilience to preserve their digital security, and security is factored into new products and services from the outset

- The security of UK networks and critical infrastructure is protected
- Digital technologies support democratic engagement and preserve freedom of expression and human rights

- UK’s media and press sectors are able to flourish online

- Citizens trust their data will be used responsibly and their privacy preferences will be upheld

Our principles

The regulation that government designs to achieve these objectives will be guided by three principles to create proportionate, agile, flexible measures:[footnote 28]

  • Actively promote innovation: Digital technologies and their applications drive innovation across every part of the UK economy, and the way we regulate them should encourage this. We will seek to remove unnecessary regulations and burdens where possible. Where we judge intervention is strictly necessary, we will first consider non-regulatory measures like technical standards to reduce burdens. Where regulation is needed, it should be designed to minimise unnecessary burdens on businesses. To do this, it should be outcomes-focused, backed by robust evidence, and consider the effects of proposed policies on innovation.
  • Achieve forward-looking and coherent outcomes: The fast-moving, cross-cutting nature of digital technologies means that previously distinct regulatory regimes may become increasingly interconnected - for example in content, competition and data protection.[footnote 29] As the landscape develops quickly, policymakers must make sure that new regulation minimises contradictions, undue burdens, or overlaps and gaps with existing frameworks. Regulatory interventions should address underlying drivers of harm rather than symptoms, in order to protect against future changes, and new regulations should be designed with a clear understanding of the links to our wider regulatory regime and goals. Regulators will take a collaborative approach through engagement with businesses and other regulators, as well as by making space for businesses to test and trial new business models, products and approaches.[footnote 30]
  • Exploit opportunities and address challenges in the international arena: Digital technologies present global solutions and global problems in a way rarely seen in other sectors. Our international commitments (including trade deals, principles and norms) and our domestic regulation heavily influence and shape each other. Policymakers will therefore build in international considerations from the start, taking account of our existing international obligations, likely future agreements, and the impact of regulations and standards developed by other nations. This includes consideration of how digital technical standards can support domestic rulemaking as a complement or alternative to regulation, and how they can facilitate international interoperability. International Regulatory Cooperation should be a first order consideration for digital regulation.

By setting out a clear and published set of objectives and principles for digital regulation which underpin our pro-innovation approach, we can make trade-offs between different objectives in a clearer and more consistent way, reducing confusion and red tape for businesses. And while we cannot set out how we will manage all specific future trade-offs, we can embed these principles into cross-government policy making processes so we can respond with agility to emerging issues and ensure we take coherent and proportionate action. While this framework will sit above a range of digital regulation policies, we will also take a more detailed and deeper look at regulatory approaches on specific technologies as well as the economy as a whole - for example via the upcoming AI Strategy and the Regulatory Horizons Council.

Break-out box: Pro-competition regime for digital markets

Competition is key to unlocking the full potential of the digital economy, driving innovation and increasing productivity. However, the market dominance of a few key tech companies is leading to fewer opportunities for challenger firms, lower innovation, higher prices and less choice and control for consumers.

In response, the government is establishing a world-leading pro-competition regime for digital markets. A Digital Markets Unit, established in shadow form in April 2021, will be equipped for proactive oversight and swift action on competition issues, helping prevent future bad outcomes before they occur.

The competition regime will drive competition between digital firms and open up opportunities for innovative start-ups to compete with incumbents. This will result in better quality services, greater choice and lower prices. Its design and implementation will minimise burdens on business, spurring investment and economic growth. The regime will also support our objectives on press sustainability, helping to rebalance the relationship between publishers and the online platforms on which they increasingly rely.

We will consult on the regime in summer 2021 and put it on a statutory footing as soon as parliamentary time allows.

Break-out box: The UK’s Data Protection Regime

The UK now controls our own data protection laws and regulations. We will continue to operate a high-quality regime that promotes growth and innovation, and underpins the trustworthy use of data. Ensuring our data protection regime is as good as it can be is critical to unlocking the power of data, which is one of the government’s Ten Tech Priorities. In doing so, we want a regime that fully supports a world-leading digital economy and society whilst underpinned by the trustworthy use of data.

There are lively debates about the future of data protection in the UK, spurred by almost three years’ experience of implementing GDPR, as well as the rapid technological change in data-intensive sectors.

One such debate is around the use of artificial intelligence to automate parts of the financial advice process. Innovative technology presents an opportunity to create more efficient, personalised financial advice, but this relies on consumers’ trust that the data they share will be used fairly, transparently and securely. The right governance or regulatory frameworks for the development and deployment of systems for automated decision-making will help to build trustworthiness and consumers’ confidence in their use.

There are opportunities across society that show how better data use delivers economic benefits as well as social benefits. And to realise these opportunities, we will need to maintain high standards of data protection while removing unnecessary barriers to data use. Our new Information Commissioner will have a key role delivering this, building trust and confidence, communicating the wider benefits of data sharing for our society - as well as for innovation and growth.

Further to the publication of our government response to the consultation on the National Data Strategy, we will continue with the pipeline of activity it sets out, including an update on our plans under Mission 2: securing a pro-growth and trusted data regime.

Break-out box: Online Safety Bill

The proposed Online Safety Bill will enshrine in law a duty of care on online companies to keep their users safe. It will defend freedom of expression and the invaluable role of a free press, while building trust and confidence and promoting innovation within the digital economy.

Social media, websites, apps and other services which host user-generated content or allow people to talk to others online will need to remove and limit the spread of illegal content such as child sexual abuse, terrorist material and suicide content. They will need to do far more to protect children from being exposed to harmful content or activity such as grooming, bullying, pornography and the encouragement or promotion of self-harm and eating disorders.

The most popular social media sites will need to go further by setting and enforcing clear terms and conditions which explicitly state how they will handle content which is legal but could cause significant physical or psychological harm to adults. The ground-breaking draft Bill was published on 12 May and will undergo pre-legislative scrutiny, and we will look to legislate as soon as Parliamentary time allows.

Putting our principles into practice

To fully realise the range of benefits that will come from a truly pro-innovation approach, it is vital these principles are put into practice across government. Digital policymaking should be coherent and pro-innovation by default, and new regulations should be designed from the outset with a clear understanding of how they connect into the regulatory ecosystem, and achieve government’s core goals. Where new challenges arise, we need to be able to resolve these issues quickly and decisively.

We will make sure these principles are also embedded in the design and operation of our regulators. We will ensure new regulatory functions are assigned coherently across the landscape and review existing duties and objectives to ensure they deliver a proportionate and coherent regime. We will review feedback between regulators and regulatory policymakers to ensure government’s objectives for digital are clearly communicated and the expertise of regulators informs policymaking. We will ensure regulators have the capabilities they need to respond quickly to the latest innovations and developments in digital technologies and markets. And we must ensure that digital regulators are able to work effectively together to deliver coherent outcomes for industry and consumers.

We are thinking globally. Visions for our digital future are internationally contested and action is needed in the G7 and beyond to achieve the ambition of the Integrated Review of Security, Defence, Development and Foreign Policy to shape the open international order of the future. This includes regulation, norms and digital technical standards - crucial for areas like the fourth industrial revolution. The recent G7 Digital and Technology Ministerial Declaration reinforced the UK’s support for industry-led, inclusive, multi-stakeholder approaches for the development of technical standards.

Embedding our principles

We want to make sure these principles apply to all digital regulation from the get-go, so we will take action to embed our approach across government and beyond. We want to ensure our policymakers and regulators can deliver our priorities, respond consistently to emerging challenges and manage tensions between our objectives.

A new approach to digital regulation

Embedding our approach across government

  • We will examine the case for a new mechanism so that policymakers factor in innovation-friendly measures when designing digital regulations.
  • To support our understanding of the drivers of harms and risks relating to digital technologies, and to strengthen our understanding of the impact of our interventions, we will work to develop new indicators. We will work with stakeholders, including the ONS, to improve our understanding of the barriers innovative companies face in terms of regulation.
  • We will explore how to ensure new regulations are designed with systematic input from external experts and tech leaders, for example through innovative engagement approaches and evidence-gathering.
  • We will review governance processes in Whitehall that shape digital policy, with a view to improving the strategic decision-making for government departments.

Embedding our approach with regulators

  • We are taking bold steps to make sure the institutional landscape delivers on our vision for innovation-friendly regulation. This includes establishing the new Digital Markets Unit to drive competition across digital markets and empowering Ofcom to regulate video sharing platforms and, subject to passage of the Online Safety Bill, oversee the new online harms regime. As new regulatory functions are introduced, we will continue to make sure our regulators can adapt and have the right capabilities and expertise to take action effectively and proportionately.
  • We will work closely with the key regulators who make up the recently-formed Digital Regulation Cooperation Forum[footnote 31], a voluntary forum comprising the CMA, FCA, ICO and Ofcom — to support their work to deliver a joined up approach to digital regulation. As part of their programme of work for 2021/22 the Forum will be focusing on a number of priority areas, including strategic projects on technological and industry developments (with specific focus on service design, algorithmic processing, advertising technology and service encryption); joint approaches to areas of overlapping regulation (e.g. between the Age Appropriate Design Code and Ofcom’s approach to regulating video-sharing platforms); and building skills and capabilities.
  • We will explore further ways to ensure regulators are able to share resources and expertise in order to maximise efficiencies, coordinate closely to avoid unnecessary regulatory burdens on industry, and improve the overall coherence and effectiveness of regulatory interventions. As part of this, we are assessing proposals put forward by the Digital Regulation Cooperation Forum, including:
    • examining ways to improve information sharing between digital regulators, which could help reduce duplicate requests made to industry and improve efficiency;
    • exploring whether to establish additional duties for digital regulators to consult and cooperate with each other, to enhance regulatory coordination on digital issues and help ensure it remains an ongoing priority; and
    • assessing the most effective mechanism for communicating government’s strategic priorities for digital markets and services to the Digital Regulation Cooperation Forum for its members to consider as part of its activities and work plan.

Embedding our approach internationally

  • Our international approach will focus on areas with the greatest impact and highest risk for the UK. We will work with our global partners and influence middle ground countries to build consensus on approaches to regulation.
  • As part of its G7 Presidency, the UK-led agreement on a number of priorities to put technology at the heart of building back better from the pandemic. The UK will host the Future Tech Forum in autumn 2021, convening like-minded democratic partners across industry, academia, and other key stakeholders to discuss new approaches to tech governance. Identifying upcoming digital regulatory challenges now will ensure a more agile and joined-up response with our international partners over the next decade.
  • Guided by the priorities set out in the Integrated Review and this Plan, we will demonstrate leadership and build consensus in key multilateral fora to promote digital competition and innovation — especially where this is difficult to implement or enforce unilaterally. We will continue to be a positive and constructive voice at the G20, and strengthen UK leadership and influence within the Organisation for Economic Co-operation and Development (OECD), Global Partnership on Artificial Intelligence, Agile Nations Network, World Trade Organisation and others, to pursue the development of digital governance approaches that improve the economic and social wellbeing of people around the world.
  • Tech — and tech regulation — will be at the centre of our relationship with the US, driven forward by an ambitious partnership on science and technology. We will set out more detail on this later this year.
  • A UK-India Strategic Tech Dialogue, agreed in principle by Prime Minister Johnson and Prime Minister Modi on 4 May 2021, will provide an overarching framework for implementing the UK-India Joint Declaration of Intent on Digital and Technology. This will include discussions on new and existing policies and regulatory practices in both countries.
  • The UK and Singapore have set out intentions to negotiate a Digital Economy Agreement, which will seek to further enhance our relationship and cooperation on digital trade. This will be a model for global digital trade rules, allow our businesses and people to harness new opportunities in the digital economy, and support a digital environment that safeguards consumers and businesses.

Break-out box: Regulating the cyber security of consumer connected products

Connected consumer products (or ‘smart devices’) represent a new chapter in how technology is becoming more common in our homes, making people’s lives easier, more connected and more enjoyable. Technology will be a key driver for growth, as the UK looks to build back better, and to exploit the potential of connectivity and innovative technology fully, we must ensure a digital base resilient to cyber threats.

As people entrust an increasing amount of personal data and information to online devices and services, the cyber security of these products is now as important as the physical security of our homes.

In April 2021, the government published its response to a Call for Views that shared further details of our plans for a new robust scheme of regulation to protect consumers from insecure connected products. The ‘Product Security and Telecommunications Infrastructure Bill’, referenced in the May 2021 Queen’s Speech, will act as the legislative vehicle.

In addition, DCMS and the National Cyber Security Centre have worked in partnership with globally-applicable standards bodies, developing ETSI EN 303 645 - the world’s first globally-applicable standard for the cyber security of consumer Internet of Things (IoT) devices.

Break-out box: Online Advertising Programme

Online advertising is at the heart of the digital economy. As the primary source of revenue for major online platforms, it underpins the provision of key online services. These services are positively transforming people’s lives. However, the online advertising market also presents new challenges for consumers, businesses, and society as a whole. It raises questions over the intensive collection, analysis and use of consumer data, as well as the appropriateness and accuracy of targeting.

The regulation of online advertising needs to reflect the evolving market and the expectations of consumers and businesses that platforms will take their own actions to stop misleading or harmful adverts. It should incentivise compliance, companies proactively reducing harm, and rapid remedial action when rules are breached.

The government’s Online Advertising Programme will look at the current framework for regulating online advertising and whether this needs to be strengthened. It will look at fraudulent and scam advertising, as well as other forms of potentially harmful or misleading online advertising, and launch a consultation later in 2021.

Conclusion and next steps

Digital technologies are key to our future prosperity. Where regulation is needed to help us realise that prosperity, we will intervene by taking a coherent, pro-innovation, and international approach. This will ensure we can maximise growth and competition in digital markets, drive UK excellence in innovation, and protect the safety, security, choices and rights of our citizens.

This Plan marks the beginning of a new chapter for digital regulation across the whole of government. We will continue this conversation on how, why and when we regulate digital technologies. The government is determined to work with industry, civil society and citizens to harness this power for economic and social good.

We are still at the early stages of our journey and there will be future challenges. To reflect the changing landscape and new challenges and opportunities, we will provide regular updates on our Plan, including through the forthcoming Digital Strategy.

Join the conversation

We want to continue the conversation on how we develop and shape our approach to future regulation. We therefore welcome continued engagement and views on our overall approach and Plan, and look forward to speaking to a range of individuals and groups across the spectrum of digital regulation in the coming months. In continuing the conversation, we would welcome views on the following areas in particular:

  1. Do you agree we have identified the three most impactful strategic objectives and relevant outcomes to deliver our vision? Are there any other outcomes we should consider?

  2. Do you have views on the three guiding principles for better digital regulation to deliver our vision and objectives?

  3. What other practical steps can we take to improve coherence and coordination across the digital regulatory landscape? What else could meet these aims other than the recommendations of the Digital Regulation Cooperation Forum?

  4. What challenges have you experienced in the current approach to digital regulation?

  5. How can government better utilise expertise from industry and civil society to design and implement pro-innovation regulation for digital technologies?

We welcome responses by 28 September 2021. You can send your views on this to: digitalregulationplan@dcms.gov.uk. You can also write to us at:

Digital Regulation Team
DCMS
100 Parliament Street
London
SW1A 2BQ

Annex: Timeline of upcoming digital regulation activity

The following table sets out upcoming government work, which will support the aims and objectives set out in this plan. For more information please visit Digital regulation: overview of government activity.

In the next three months In the next 6 months In the next 12 months and beyond
Strategies Innovation Strategy

Business Resilience & Cyber Security Review

AI Strategy

Media Literacy Strategy
Digital Strategy

National Cyber Strategy

National Data Strategy Implementation Framework
 
Consultations Consultation on pro-competition regime & Digital Markets Unit

Digital Identity & Attributes consultation

Government response to National Data Strategy consultation
Online Advertising consultation

Gambling White Paper

Broadcasting White Paper

Government response to Digital Radio and Audio Review

Consultation on Network Information Systems & Cyber Security regulation.
Business Resilience and Cyber Security Review

Consultation on Regulating the Cyber Profession

The government intends to legislate on a range of areas affecting the regulation of digital technologies when parliamentary time allows. This includes the following areas:

  • Online Safety
  • Digital Competition
  • Cyber Security, including on connected devices
  • High Fat Salt and Sugar advertising
  • Digital imprints in election material
  1. Changes to online use due to COVID-19 and other factors can be found in Ofcom: Online Nation (2021) 

  2. See World Bank Ease of doing Business,OECD International Regulatory Cooperation, and Global Innovation Index 

  3. For example, the challenges arising from network effects, outlined by DeNardis, in ‘Society and the Internet: how networks of information and communication are changing our lives’ (Graham and Dutton, 2019) 

  4. DCMS Economic Estimates 2019: Gross Value Added (2020) 

  5. DCMS Sectors Economic Estimates 2019: Employment (2020) 

  6. DCMS Sectors Economic Estimates: Business Births and Deaths (2020) 

  7. Tech Nation Report 2021 outlines further successes for the UK in tech investment (2021) 

  8. Ipsos MORI, Consumer Attitudes towards IoT Security (2020) 

  9. Ofcom, Digital divide narrowed by the pandemic, but around 1.5m homes remain offline (2021) 

  10. Further information about public attitudes towards tech can be found at Doteveryone, Digital Attitudes Report (2020) 

  11. Ofcom, Online Nation (2021) 

  12. DCMS Cyber Breaches Survey (2021) 

  13. Examples found inCSIS (2021)NCSC (2021); BBC (2021) 

  14. See e.g.Ministry of Economy, Trade and Industry, Japan, Governance Innovation: Redesigning Law and Architecture for Society 5.0 (2020) 

  15. More features can be found in PwC, Digital Opportunities and Harms (2021) 

  16. See Khan, Amazon’s Antitrust Paradox (2017); Bagnoli, Digital Platforms as Public Utilities, (2020); Rahman, Regulating Informational Infrastructure: Internet Platforms as the New public Utilities (2018) 

  17. For examples of work which disputes regulating/classifying digital services as utilities, see Unlocking digital competition, the Report of the Digital Competition Expert Panel (2019), Thierer, The Perils of Classifying Social Media Platforms as Public Utilities (2012), Jamison, Should Google be Regulated as a Public Utility?(2012), 

  18. Tait, Banda & Watkins, Proportionate and Adaptive Governance of Innovative Technologies (2018) 

  19. Nesta, The Impact of Regulation on Innovation (2012) 

  20. OECD, Regulatory effectiveness in the era of digitalisation (2019) 

  21. BEIS, Regulation for the Fourth Industrial Revolution (2019) 

  22. Jesus College Cambridge, Multilateral Solutions for Global Governance of the Information and Communications Technology Industry(2019) 

  23. For example, technical standards are referenced alongside regulatory tools in the UK’sdigital identity and attributes trust framework, which represents a cohesive set of rules for digital identity services. 

  24. Some challenges and risks set out in Ofcom, Online Market Failures and Harms (2019) 

  25. Drawn from work produced for DCMS by PwC on Digital opportunities and harms (2021) 

  26. Ustundag and Cevikcan, Industry 4.0: Managing the Digital Transformation (2018) 

  27. UK scores well for relevant measures in World Economic Forum, The Global Competitiveness Report (2020) 

  28. Developed using, amongst other work: Nesta (2019); PwC (2021); OECD (2012 and 2019); BEIS (2018); House of Lords (2019); Tait, Banda & Watkins (2018) 

  29. Further detail in CMA & ICO, Joint statement on competition and data protection law (2021); IMF, Rising Corporate Market Power: Emerging policy issues (2021) 

  30. E.g. ICO Regulatory Sandbox, FCA Regulatory Sandbox 

  31. The Digital Regulation Cooperation Forum brings together the CMA, Ofcom, ICO and FCA. Prior to the FCA joining the Digital Regulation Cooperation Forum, DCMS Secretary of State invited the Forum to share evidence on options to improve coordination across the landscape which is available here:Digital Regulation Cooperation Forum: Embedding coherence and cooperation in the fabric of digital regulators (2021),