The View From DC: Online Safety and Economics

(Part Four of the Discussion Paper: The View From DC in November 2023)

Balancing safety and economic success

The approach to online safety with the US varies significantly from that of other countries. The US relies on a mostly market-driven approach with a focus on self-regulation by tech companies. Outside the US, there is a stronger emphasis on regulatory frameworks and an investment in an ecosystem of online safety agencies and organisations.

The USA has been at the forefront of information technology business innovation, and currently hosts more than half of the worlds “unicorn” companies.

Some commentators have drawn a parallel between those things, with Marc Andreesen of the VC firm Andreessen Horowitz even going so far as to label trust and safety and tech ethics as enemies of progress.

High profile regulatory activities out of Australia, Europe and the UK dominated discussions in 2023 – but their impact on innovation and/or safety outcomes are yet to be ascertained.

Governments are no doubt keen to find approaches that are simultaneously good for safety and profitability, and there are many other online safety activities and initiatives around the world worth following. This is a key driver behind the Online Safety Industry Update and the development of the Online Safety Exchange community.

Outsourced Online Safety Opportunities

Online safety in the US has been predominantly led by the trust and safety teams within tech companies. There were approximately a quarter of a million people laid off by the tech industry in 2023 including many significant cuts to trust and safety teams. Given the dominance of US companies in the technology space, these cuts do represent a substantial reduction in the overall capacity of the online safety ecosystem globally.

As big tech downsized trust and safety, new companies focused exclusively on trust and safety technologies emerged. The trust and safety services market is expected to reach $15 to $20 Billion USD in 2024. This creates new opportunities for experienced trust and safety and online safety practitioners to commercialise their expertise.