UK's Pornography Regulation Law: A Chance to Lead

What happened: The UK has an opportunity to lead in regulating online pornography, with a focus on ensuring consent from participants. Recent failures, such as those exposed by the New York Times regarding Pornhub, have highlighted the need for such legislation. Meanwhile, the UK has banned "step" porn, where actors pretend to be related, while simultaneously enacting protections against actual Muslim incest. The EU is also tightening regulations on VPNs, potentially impacting online privacy and age verification processes.

Market impact: This narrative affects online pornography platforms and VPN providers. Companies like MindGeek (owner of Pornhub) may face stricter regulations and potential re-evaluation of their business models. VPN providers like NordVPN, ExpressVPN, and Surfshark could see reduced usage or increased costs due to EU regulations. Age verification companies, like AgeID and Yoti, might benefit from increased demand for their services.

What to watch next: The UK's upcoming regulatory decisions on online pornography consent, expected in late 2022 or early 2023, will shape the future of the industry. Additionally, the EU's "Chat Control" agenda, with proposed VPN regulations in 2023, will impact online privacy providers. Lastly, earnings reports from affected companies, such as MindGeek and major VPN providers, will provide insights into the financial impact of these regulatory changes.