The British government is reportedly willing to renegotiate key elements of its Online Safety Act to ease U.S. free speech concerns and secure a trade deal with Donald Trump’s administration. The move highlights the growing tension between the UK’s strict online content regulations and America’s strong First Amendment protections.

The Online Safety Act passed under the previous Conservative government, grants Ofcom sweeping regulatory powers over digital content, including the ability to fine social media platforms up to £18 million ($22.4 million) or 10% of their global revenue for failing to remove “harmful but legal” content, in other words, age verification.

Critics, including the Free Speech Union (FSU) and the Electronic Frontier Foundation (EFF), argue that the law will pressure social media companies to engage in preemptive censorship, adopting an “if in doubt, cut it out” approach to lawful but controversial content.

This contrasts sharply with U.S. free speech protections, where courts have repeatedly ruled that the government cannot compel private companies to act as speech police (Missouri v. Biden, NetChoice, LLC v. Paxton, NRA v. Vullo).

According to sources close to the Trump administration, the Online Safety Act is viewed in Washington as “Orwellian” and a major obstacle to a UK-U.S. trade agreement.

“To many people currently in power, they feel the United Kingdom has become a dystopian, Orwellian place where people have to keep silent about things that aren’t fashionable,” a senior U.S. official stated.

Elon Musk, a key Trump ally and vocal critic of UK speech regulations, has been lobbying the administration to demand changes to the law as part of trade negotiations. Musk has frequently clashed with UK authorities, most recently advocating for the release of far-right activist Tommy Robinson, jailed for contempt of court.

Andrew Hale, a trade policy analyst at the Heritage Foundation, confirmed that the Act is seen as a significant obstacle in talks with U.S. officials:

“Every meeting I have to discuss trade policy with people either in the administration or Congress, they always raise that. They say, ‘This is a huge roadblock’.”

With U.S. tariffs looming, British officials are increasingly worried about the economic consequences of the Act. Trump recently paused tariffs on Mexico and Canada following negotiations, leading UK policymakers to hope that similar concessions—such as reworking social media laws—could prevent the UK from becoming Washington’s next trade target.

Prime Minister Sir Keir Starmer, who campaigned on a platform of stronger online regulations, now faces a delicate balancing act between Labour’s commitment to digital safety and the economic necessity of maintaining a strong U.S. trade relationship.

However, any attempt to soften the Act would likely face intense resistance from Labour MPs, who supported the law while in opposition and promised further regulations in their election manifesto.

Industry experts predict that if Ofcom attempts to fine major platforms like X (formerly Twitter) and Meta for failing to comply with the Online Safety Act, a major legal battle could erupt.

Lord Young of Acton, founder of the Free Speech Union, warned of a potential showdown between Elon Musk, Mark Zuckerberg, and the UK government:

“If Ofcom tries to fine X or Facebook 10% of their global turnover for not removing content that isn’t unlawful, I predict a showdown between Elon Musk, Mark Zuckerberg, and the UK Government.”

“If that happens, Trump will side with his tech bros and tell Sir Keir that if he wants a trade deal, he’ll call off his dogs.”

The Bigger Picture: Britain’s Struggle Between Regulation and Trade
The debate over the Online Safety Act is shaping up to be a test of Britain’s post-Brexit economic and regulatory independence. While Labour’s push for stricter online safety laws aligns with European-style digital governance, U.S. trade interests and free speech concerns could force a significant policy shift.

With Ofcom’s new enforcement powers set to take effect in March, Britain may soon have to choose between prioritizing online content regulation or securing a transatlantic trade deal—a decision that could have far-reaching consequences for digital policy, free speech, and the UK economy.