The Online Safety Act requires that Ofcom’s operating costs for the online safety regime are covered by providers of regulated services through a fees regime, and that the calculation of fees should be based on providers’ qualifying worldwide revenue (QWR). The Act also stipulates that the same determination of QWR for fees is also used to calculate the maximum penalty cap that can be imposed on a provider in breach of its duties under the Act, although Ofcom has the power to take a different approach where it finds joint and several liability.
Ofcom is now consulting on its proposals for fees and penalties, including:
- The definition and threshold of QWR,
- Its approach to the Statement of Charging Principles.
- Details providers must supply and the way in which they must be supplied for fees notification.
- Its proposals for QWR when setting maximum penalties.
- An exemption from the fees regime.
In particular, Ofcom proposes that QWR is defined as a firm’s global revenue from its regulated services, rather than just revenue directly attributable to the UK, when calculating fees or the maximum penalty for a provider.
It is also consulting on its proposed advice to the Secretary of State that the QWR threshold, at or above which regulated firms will be required to pay fees, be set at £250m. However, it considers that any threshold figure within a £200m to £500m range could be appropriate,
The consultation ends on 9 January 2025. Ofcom will consider responses in early 2025, following which it will publish its statement, and formally provide advice to the Secretary of State, who will ultimately decide on the threshold for the payment of fees. Separately, Ofcom will also consult on a Statement of Charging Principles in 2025 before relevant firms are expected to pay fees in the financial year 2026-27.
