Trust in digital platforms has become a concern for both citizens and authorities. With growing numbers of services offered digitally for financial, e-commerce, gaming and social media services, the regulation of these services may be becoming more important for building trust.
Regulation in practice: meeting user expectations
Companies such as Lottoland provide insight into how these expectations are being met in practice. Operating within a regulated framework, such platforms highlight the need for ongoing compliance with clear, consistent and effective rules, in order to achieve consumer trust over time. This cannot be taken for granted based on the historical legacy of a company or individual but is rather the result of an ongoing verification process, where the business is held accountable and in compliance with regulations. According to Deloitte’s “New Consumer behavior in digital retail” study, transparency and accountability are now among the factors considered when customers buy and use products and services. Regulation is no longer a restrictive tool, but an enabling structure, supporting the building of a sustainable relationship between businesses and users.
The UK’s legislative framework
The UK has made significant strides in terms of platform governance. The Online Safety Act 2023 introduces specific obligations on platforms with respect to user protection, while the Digital Markets, Consumer and Competitions (DMCC) Act 2024 also seeks to curb anti-competitive conduct in the digital economy, thus enhancing online consumer protection.
In recent years the requirements of UK GDPR have introduced a further layer of regulatory expectation, with the ICO issuing guidance on the data protection expectations for platforms which have the effect of making these expectations enforceable. The FCA has also introduced the Consumer Duty regulatory framework which has further enhanced the standards of behaviour expected of firms operating in financial services including those providing services through financial platforms.
Government strategy and what comes next
The Department for Science, Innovation and Technology (DSIT) has provided an overview of its planned DSIT regulation, with an aim to achieve horizontal regulation – or the imposition of multiple regulations on multiple sectors, without individual control points – while avoiding the fragmentation of individual regulatory controls. The UK government’s approach to digital policy is towards achieving a position where there is a degree of co-regulation between regulators. This is likely to create spaces that digital platforms could potentially exploit.
A shifting standard for digital credibility
Regulation is not trust itself, but it does create a regime within which trust can be checked and verified. The evolution of new legislation in the UK may mean that the platforms that are built for compliance will have a clear strategic advantage over those which simply view it as a hindrance.
