The Secretary of State for Science, Innovation and Technology has written to the Chair of Ofcom, setting out her final decision on the threshold for paying fees under the Online Safety Act 2023.

We commented on Ofcom’s recommendations to the Secretary of State here. In her letter, the Secretary of State agrees to set the Qualifying Worldwide Revenue (QWR) threshold at £250 million, explaining that “this threshold ensures that small services which fall below this threshold do not face burdens of fee paying”.

The Secretary of State also approves Ofcom’s proposal to exempt from fees those providers whose UK-referable revenue is less than £10 million on the basis that it will incentivise companies to enter the UK market without needing to pay fees initially.

Ofcom had previously committed to considering whether exemptions are appropriate for certain sectors which pose a lower risk to users. The Secretary of State welcomes this, highlighting vertical search services in particular, and encourages Ofcom to prioritise its work on considering exemptions as the implementation of the fee regime progresses.

Finally, the letter states that the Government welcomes Ofcom’s willingness to engage in a review of the fee regime to ensure that it does not place undue burdens on safe and responsible businesses, and that the threshold figure will be kept under review following the initial charging year.

A Statutory Instrument will now be laid before Parliament to confirm the QWR threshold figure.

To read the letter in full, click here.