US lawmakers have introduced the Granite Act, which aims to prevent the UK's Ofcom from enforcing speech-related fines against American companies through US courts. This legislative move follows ongoing tensions between the US and UK regarding the Online Safety Act and its potential impact on American tech firms.
The introduction of the Granite Act signals a hardening US stance against international digital regulations that conflict with First Amendment protections. For streaming and social platforms, this creates a legal shield against UK-based financial penalties, potentially neutralizing Ofcom’s primary leverage over non-UK entities. The friction extends beyond speech to market competition, as US lawmakers view UK mandates to prioritize domestic broadcasters like the BBC as a threat to the competitive marketplace of ideas. Industry leaders should monitor whether this legislative push stalls future US-UK trade negotiations or forces the Starmer government to scale back its regulatory ambitions for American tech firms.
Republican lawmakers have introduced the Granite Act to prevent the UK regulator Ofcom from using US courts to collect speech-related fines. This legislation aims to protect American platforms like 4chan and X from UK regulatory overreach, signaling a hardening US stance against international digital mandates that conflict with First Amendment protections.
The Granite Act is designed to remove sovereign immunity for foreign regulators, preventing them from using US courts to enforce speech-related judgments or collect fines against American platforms.
Ofcom recently issued a £520,000 fine against 4chan, which has sparked legal challenges from both 4chan and Kiwi Farms.
US lawmakers view UK mandates, such as the proposed 'Watch This Space' Green Paper requiring platforms to prioritize BBC and ITV content, as a threat to the competitive marketplace of ideas and a form of regulatory overreach.
Tensions over regulatory overreach and the Digital Services Tax have already led US officials to shelve a £31 billion Tech Prosperity Deal with the UK.
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