X Agrees to Faster UK Content Review Under Ofcom Pressure

Social media platform X agreed to accelerate its review and removal of illegal content in the United Kingdom, UK communications regulator Ofcom announced on May 15, 2026. The commitment follows intense scrutiny under the country's new Online Safety Act, which gives Ofcom the power to levy fines of up to 10% of a company's global annual revenue for non-compliance. This development places X's content moderation policies under a microscope as it adapts to one of the world's most stringent digital regulations.

What is the UK's Online Safety Act?

The Online Safety Act, which received Royal Assent in late 2023, imposes a new duty of care on technology companies to protect users, particularly children, from harmful content. The legislation requires platforms like X to proactively find and remove illegal material, such as terrorist content and material related to child sexual abuse and exploitation. It also mandates the use of age-verification tools for platforms hosting pornographic content.

Ofcom is the independent regulator empowered to enforce the act. Its mandate includes developing codes of practice and holding companies accountable for their user safety policies. For the largest platforms, the potential financial penalties are substantial. Fines for non-compliance can reach as high as £18 billion or 10% of a company's annual global turnover, whichever is greater, creating a powerful incentive for platforms to adhere to the new rules.

Why is X Under Regulatory Scrutiny?

X has faced heightened regulatory examination since its acquisition by Elon Musk in 2022. Following the takeover, the company significantly reduced its workforce, including a reported 80% cut to its trust and safety team. These reductions raised immediate concerns among regulators and civil society groups about the platform's ability to effectively combat misinformation, hate speech, and illegal content.

Reports from various monitoring groups have indicated a rise in harmful content on the platform, making it a key focus for regulators globally. Ofcom's engagement with X is part of its broader remit to assess the readiness of major tech firms to comply with the Online Safety Act. This agreement on faster reviews is the first public outcome of that engagement, indicating the regulator is actively enforcing its new powers.

What Does 'Faster Review' Mean in Practice?

The agreement for a "faster review" compels X to shorten the time between when illegal content is reported and when action is taken. While specific timelines were not disclosed, Ofcom's codes of practice generally expect platforms to act on the most serious illegal content, such as CSAM, within 24 hours of it being flagged. This requires strong systems combining AI-driven detection with human moderation.

This commitment will likely require X to reinvest in its content moderation infrastructure, both in terms of technology and personnel focused on the UK market. The platform's performance will be measured against its own terms of service and the legally binding codes of practice set by Ofcom. Failure to meet these standards could trigger a formal investigation and the possibility of significant fines.

What are the Broader Market Implications?

The primary implication for X is the increased cost of compliance. Enhancing moderation capabilities is a resource-intensive task that could impact the company's operating margins. However, failing to comply presents a far greater financial and reputational risk. The agreement is also a strategic move to rebuild trust with advertisers, who have been cautious about brand safety on the platform since 2022.

Following the takeover, X's U.S. advertising revenue was reported to be down by as much as 59% year-over-year amid advertiser concerns over content moderation. By demonstrating a commitment to safety in a key market like the UK, X may hope to reassure corporate partners that it is a safe environment for their brands. This action sets a precedent for how X may engage with regulators in other jurisdictions, such as the European Union under its Digital Services Act (DSA).

One significant counter-argument is that this agreement is merely a public commitment, and its true impact depends entirely on Ofcom's enforcement capabilities. Critics suggest that without transparent reporting and aggressive regulatory audits, such promises may not translate into meaningful changes on the platform. The effectiveness of the new process remains to be proven.

Q: Does this agreement apply outside the UK?

A: No, this specific agreement is between X and the UK regulator Ofcom, pertaining to compliance with the UK's Online Safety Act. However, it is part of a global trend of increased platform regulation. Actions taken by X to comply in the UK could inform its strategies for adhering to similar laws, like the EU's Digital Services Act, but are not directly applicable elsewhere.

Q: Who is the UK regulator involved?

A: The regulator is Ofcom, the United Kingdom's communications authority. Its role was significantly expanded by the Online Safety Act, granting it powers to oversee and regulate online platforms to protect users from harmful and illegal content. Ofcom is responsible for setting and enforcing the new safety rules for tech companies operating in the UK.

Q: What are the ultimate penalties for non-compliance?

A: Beyond fines of up to £18 billion or 10% of global turnover, Ofcom has additional enforcement tools. As a last resort, the regulator holds the power to direct payment providers and internet service providers to block a non-compliant service, effectively making it inaccessible to users within the United Kingdom. This represents a significant operational threat to platforms.

Bottom Line

X's agreement with UK regulators signals a costly but necessary step towards compliance, with its enforcement shaping future platform liability and advertiser confidence.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.