What the Online Safety Act 2023 Means for Digital Businesses — Plus a Landmark Court Ruling

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Introduction

The Online Safety Act 2023 has introduced sweeping regulation for digital platforms, demanding stronger protections against illegal and harmful content. Meanwhile, a recent UK Supreme Court ruling overturned major city trader convictions due to legal misdirection, underscoring the judiciary’s role in protecting fair trials.

Let us unpack what both developments mean for businesses and legal professionals.

Part One: The Online Safety Act — What It Requires

Who Needs to Comply?

Firms offering user‑to‑user services or search functionality that reach UK users—whether based domestically or abroad—must comply, including social media, content platforms, forums, messaging, and more.

Key Duties for Providers

1. Risk Assessments
   Regular evaluation of possible harms (illegal and to children) and mitigation measures, scaled to company size and platform risk.
2. Must use age verification or estimation to block harmful content for minors. Enforcement began July 25, 2025, including adult content and self-harm material.
3. Content Moderation & User Controls
   Providers must offer reporting tools, transparency on moderation decisions, and features enabling users to filter content they find harmful.
4. New Criminal Offenses
   Offenses include cyber‑flashing, sharing intimate images without consent, encouraging self‑harm, and deepfake pornography.

Regulation & Penalties

Ofcom is the regulator with extensive powers: fines up to £18 million or 10% global revenue, criminal liability for executives, and service restrictions—including blocking or removing payment support.

The government affirms there are no plans to repeal the Act despite criticism, citing public protection motivations.

Ongoing Controversies

Critics warn the Act could undermine encryption, privacy, and free expression. Scanning private messages for illegal content—though deferred pending feasibility—remains deeply contested. The surge in VPN use to sidestep restrictions has raised additional concerns, though enforcement targets platforms rather than users.

Part Two: City Trader Convictions Ruled Unsafe — Lessons Beyond Finance

The UK Supreme Court overturned convictions of Tom Hayes and Carlo Palombo, traders convicted of benchmark manipulation.

The error: jurors were incorrectly instructed that any commercial motivation suggested dishonesty—a legal direction that should have been decided factually by the jury.

Though not exonerated, their cases highlight critical flaws in legal procedure, particularly how misdirection can invalidate verdicts, even after lengthy trials.

Conclusion

The Online Safety Act 2023 is reshaping the UK's digital landscape, enforcing stronger protections for vulnerable users, especially children. At the same time, the landmark court ruling on trader convictions exposes deep procedural vulnerabilities—reminding us that justice is as much about fair process as it is about evidence.

Legal professionals, tech executives, and compliance officers should monitor both developments closely.