TIGA is please to share if full the latest Ofcom Update regarding publication of the Online Safety Fees and Penalties Statement:
Since the enactment of the UK’s Online Safety Act in 2023, we have been working to implement the new online safety regime. Among other duties, the Act requires Ofcom to implement a fees regime to cover the regulatory costs associated with online safety regulation. In this regard, the Act specifies that Qualifying Worldwide Revenue (QWR) should be used in determining the level of fees they will have to pay to Ofcom. In addition, QWR should be used as the basis for calculating the maximum penalties when providers breach their duties under the Act.
Following our public consultation in October 2024, which set out our proposals to establish the fees and penalties regime, we received 26 responses from a range of stakeholders. We have since considered these responses, engaged further with stakeholders and further developed our evidence base to inform our decision-making. Today, we have set out our decisions to implement the fees and penalties regime in the Online Safety Fees and Penalties statement.
Overview of the Statement
You can find a copy of our statement on our website. The statement sets out our decisions on:
- The definition and approach to calculating QWR for fees and penalties.
- The definition of QWR for the calculation of a maximum penalty where we find group entities jointly liable.
- Our advice to the Secretary of State on the QWR threshold, at which providers become liable to pay fees.
- Our proposed exemption to the fees regime, which must be approved by the Secretary of State.
- Our approach to the Statement of Charging Principles (SoCP), which will determine how fees are calculated. We will consult separately on the SoCP in Q4 2025.
- The evidence, information and supporting documents that providers must supply when complying with their duty to notify Ofcom if they are eligible to pay fees.
Further consultations
In 2025, we intend to publish three further consultations to give providers more clarity on the fees regime:
QWR Guidance: This guidance is intended to help providers in the process of calculating their QWR. We will engage closely with key stakeholders, such as respondents to our consultation, to inform the development of our guidance. We intend to consult on this in Q3 2025.
Notification Guidance: This guidance is intended to help providers in the process of submitting their notification.
Statement of Charging Principles: This will set out the principles that Ofcom must apply when charging providers fees.
Key milestones
- Q4 2025: We expect the QWR Regulations and Notification Regulations to come into force. We also expect the Secretary of State to approve our proposed exemption and lay regulations in Parliament on the QWR Threshold figure.
- Q4 2025: We expect the QWR Threshold Regulations to come into force, which will trigger the regime going live.
- Q4 2025: 4-month notification window for the initial charging year opens, where eligible providers should notify us of their QWR so that we can calculate the fees they will need to pay.
- Q3 2026: We will issue invoices to providers who are liable to pay fees for the 26/27 financial year.
For further reference, a high-level implementation timeline is available at the end of Chapter 1 of the statement.
We encourage you to review the statement and engage with our decisions. If you would like to discuss the statement, please reach out to the Fees project team on: OSfeesregime@ofcom.org.uk.
