Social media firms are worried about an expected drop in users following the UK’s passage of an online safety bill. A source familiar with advertising on Instagram told the Financial Times that with increased consumer scrutiny, social media platforms will have fewer users and therefore fewer people to advertise to. The legislation is not yet in force but is getting closer as it moves through the final stages of the House of Commons. Starting this week.
The FT also spoke to people involved in the policies of social media companies, who said the new bill would exclude young users from the platform. They say the bill would also discourage people with identity or privacy concerns from using the platform. All this will affect advertising revenue.
With interest rates rising and getting credit more expensive, businesses are cutting back on advertising spending, which is also hurting social media companies. With these additional protections coming into law, it will further affect the revenue of these companies.
Last week, Nevin reported that several Conservative backbenchers called for the bill to include jail terms if owners of social media firms do not comply with the law instead of fines. Reports suggest. The government was close to dealing with the MPs on the issue.
Once the bill is cleared by the House of Commons, it will go through several readings in the House of Lords and then be sent for Royal Assent where it will become law. While the bill’s supporters want it all to happen quickly, it’s unclear how long it will take.
Source: Financial Times