The UK Government has published an action plan aimed at overhauling and streamlining the country’s regulatory landscape. Although the planned reforms span a broad swathe of industries, they contain several significant developments for those working in telecoms, technology and digital markets, as well as for regulatory bodies such as the Competition and Markets Authority (CMA), Ofcom and the Information Commissioner’s Office (ICO). Below we examine the proposals most likely to shape commercial and regulatory strategy over the coming months and years.

1. CMA: A renewed growth mandate and proposed legislative reform

The CMA will receive a new, growth-focused “Strategic Steer”, following a consultation completed in March. This is part of a government drive to clarify and simplify each regulator’s duties, ensuring they are equipped to support innovative businesses and attract investment to the UK. There will also be a consultation on proposed legislative reforms to the UK’s competition regime, including measures to improve “pace, predictability and proportionality”. The following points are especially pertinent to the tech and telecoms sectors:

• Mergers and acquisitions: The Government plans to address uncertainty in how mergers come under UK scrutiny by consulting on reforms to the so-called “share of supply” and “material influence” tests. These potential changes could significantly alter the CMA’s jurisdiction to review deals, possibly shrinking or clarifying the scope of transactions subject to scrutiny.
• Digital markets: The CMA continues to apply its “4Ps” approach (Pace, Predictability, Proportionality and Process) to digital markets. Stakeholders in telecoms and technology who may find themselves in the CMA’s crosshairs or needing clearances will be watching closely for any move that streamlines investigations or shortens review periods.
• Regular reviews of binding remedies: Where the CMA’s Market Investigations impose remedies on businesses, the Government is considering introducing measures so that the necessity of these remedies is subject to more frequent review. This could, in theory, reduce the long-term burden on regulated parties or at least introduce a mechanism for remedy “sunsetting”.

Firms navigating transactions in the tech and telecoms spaces (particularly those involving data-rich or fast-scaling businesses) should factor these anticipated changes into their M&A strategies, competition risk assessments and longer-term planning.

2. Ofcom: Supporting connectivity, spectrum innovation and online services

Ofcom, which plays a central role in regulating telecoms and increasingly digital services, is singled out in the action plan for several tasks to boost innovation and streamline processes:

• Spectrum management: Ofcom will take further steps to open up and share underutilised spectrum (particularly in the mmWave range), enabling innovative private networks and next-generation mobile services. This includes new auctions and facilitating greater use of satellite-direct-to-mobile connections, which might help “plug coverage gaps” and push new products to market.
• Telecoms infrastructure: Building on its existing plans, Ofcom will finalise the second half of its 10-year framework for fibre investment by 2025. The Government’s stated intention that regulation must not discourage private-sector investment. Stakeholders can expect ongoing updates on how Ofcom balances consumer protection with the desire to encourage infrastructure rollouts.
• Online safety: Ofcom’s new Digital Support Service, designed to help organisations understand and comply with incoming Online Safety requirements, will continue expanding. By summer 2025, Ofcom plans to refine its interactive guidance, offering a more tailored approach to supporting platforms, app developers and other tech businesses.

Telecoms operators and digital platform providers may see accelerated processes around licensing, access to new spectrum, and investment approvals. The extension of the Online Safety regime means businesses should expect updated guidance – and possibly stricter compliance checkpoints – on user safety and content moderation.

3. ICO: New sandboxes and a relaxed approach to privacy-preserving advertising

For data-centric businesses, the Government’s plan highlights a more pro-innovation stance in data protection and privacy regulation, particularly under the ICO:

• Regulatory sandbox pilots: The ICO will pilot an extension of its sandbox to allow certain data-driven innovations to proceed with exemptions from specific requirements, all under ICO supervision. This could prove attractive for tech developers (especially AI start-ups) keen to test or refine products in a semi-contained environment.
• Privacy-preserving online advertising: The ICO proposes a more flexible approach to enforcing consent rules for “privacy-preserving” ad formats, in anticipation of upcoming legislative changes. The intention is to give online advertisers leeway to experiment with technologies that do not rely on the more traditional, identity-driven tracking models.
• AI-focused Code of Practice: The ICO will produce a new statutory code on AI and automated decision-making, aimed at making it clearer how data protection principles apply in AI-driven environments. This is likely to be a key text for in-house legal and compliance teams navigating the fast-evolving AI landscape – particularly if they are grappling with cross-border data transfer issues and compliance at scale.

The ICO’s pilot schemes and code of practice promise to reduce red tape for innovative data or AI projects, but all under close regulatory oversight. Organisations contemplating new advertising models or AI-driven products should monitor the ICO’s guidance closely to ensure they position themselves for compliance from the outset.

4. Overarching shift: A pro-innovation and risk-based regulatory mindset

Running throughout the Government’s proposal is a desire to move away from what it describes as an increasingly “risk-averse” approach in the UK. Regulators will be encouraged – or potentially required – to:

• Publish clear service and approval timelines: The plan pushes for new statutory or internal targets for processing licences and consents. “Paid-for fast lanes” (to expedite approvals) are also being considered.
• Simplify or merge overlapping regulators: The Government has promised to explore merging regulators or consolidating their responsibilities where overlap is deemed redundant or overly complex.
• Tailor regulation for new technologies: A fundamental aim is to equip the UK with frameworks friendly to AI, digitalisation and future technologies (e.g., quantum, autonomous vehicles and advanced telecoms).

For tech and telecoms firms, the language of “risk-based” regulation may translate into fewer bureaucratic hurdles – provided certain governance checks (including robust internal compliance) remain in place.

5. Practical implications and next steps

• Engage early: Many of the proposals (particularly around CMA reforms and Ofcom’s approach to connectivity) will be subject to upcoming consultations. Telecoms and tech businesses, as well as investors and innovation-led organisations, should look out for these consultations and respond to help shape outcomes.
• Review compliance: The promise of “relaxed” enforcement or merged regulators should not be mistaken for lax regulation. Stakeholders should continue to maintain strong internal compliance, especially as regulators will still be bound by law to uphold consumer and data protection standards.
• Stay nimble: Both the CMA and Ofcom want to move more swiftly – an advantage for businesses seeking authorisations or clearer competition guidance. But the flipside is that regulatory reviews may also accelerate. Shortened timelines for approvals and investigations highlight the importance of planning ahead.

Overall, these reforms reflect the Government’s ambition to revitalise the UK’s status as a competitive, innovation-friendly jurisdiction – one in which forward-looking regulation goes hand in hand with economic growth. With further details and legislative proposals expected over the coming months, organisations in the telecoms and tech spheres would be wise to keep close tabs on developments and engage wherever possible to ensure that, amid the drive to reduce “red tape”, the rules remain workable in practice.

Read the policy paper in full here.

Our team at Wiggin advises telecoms, technology and media clients on both the legal and commercial dimensions of regulatory change. If you have any questions about how these reforms may affect your business, please contact us. We will continue to monitor progress and provide updates on the practical impact of these proposals.