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The DRCF is keen to continuously iterate and realise the full benefits of effective regulatory cooperation for regulators, industry and wider society. Each year, the DRCF Annual Report sets out our achievements, projects and outputs for the twelve-month period (see our latest here). To complement the facts and figures contained in our Annual Reports, this article is a deeper dive into some aspects of the DRCF’s impact. Where possible, as mentioned in our 2024/2025 workplan, we will continually use data and metrics to identify and measure the DRCF’s impact.
Displayed through the evidence we have gathered, the DRCF has provided benefits for regulators, government and wider society. The DRCF has enabled regulatory efficiency, resulting in cost savings and shared expertise in areas of research as well as contributing to regulator capabilities. The DRCF’s work to ensure coherence between regulatory remits has brought direct benefits for industry and consumers. The DRCF has enabled more streamlined communication between regulators and industry, resulting in joined up approaches to legislative change. We will continue to gather information on the impact we make, using it to continually iterate our projects and workstreams.
Our approach to assessing impact
We are often asked about the impact of the DRCF. We have drawn on a broad base of feedback to gather evidence, so that we can more effectively understand and demonstrate the value of inter-regulator cooperation, enable learning and ensure our use of resources is as effective as possible. Measuring impact is not a simple task due to the diverse nature of DRCF work but through ongoing dialogue with our external stakeholders, insights gathered through our network of colleagues, and collecting data where available, we’re able to collate a picture of the impact we have made.
Our impact externally
The DRCF’s external publications and engagement have influenced digital markets and improved the clarity of regulators’ expectations, helping to achieve better outcomes for consumers and society. In our recently published call for input response, we identified several examples in which external stakeholders have set out the impact that the DRCF has had on improving clarity and coherence of regulatory activity in the digital economy.
For example, some stakeholders told us they welcomed the ICO and CMA joint position paper on harmful online choice architecture for the clarity of its messaging. This joint work helped influence firms to improve online choice architecture for consumers, helping to drive fair outcomes. Respondents also welcomed the joint CMA-ICO work on digital advertising: they noted that by combining legal and technical cross-regulator expertise to examine competition and data protection issues together, the regulators were better able to deliver positive outcomes for users. This cooperation has related to both the Google Privacy Sandbox commitments and Apple’s App tracking transparency requirement (here).
Our collaboration between regulators, for example on adtech and safety tech - online choice architecture and cookies, age assurance and content moderation - is having a significant impact on the UK’s social media and digital markets. Our papers, such as on immersive futures, quantum and algorithmic audit, are helping to shape the direction of those industries. For example, in their ‘Regulating Quantum Technology Applications’ paper, the Regulatory Horizons Council wrote that future gaps in quantum-based applications should ‘build on the experiences of the DRCF’ and that insights from DRCF forward-looking activities ‘could prove invaluable’.
Internationally, the DRCF is an example for digital regulatory cooperation and a vehicle for greater UK cooperation with international counterparts.
It is inspiring similar international models, with several other jurisdictions establishing digital regulatory collaboration fora similar to the DRCF. In the words of Clarisse Girot, Head of Unit, OECD Working Party on Data Governance and Privacy,
“The DRCF serves as a significant example of successful cross-regulatory cooperation, leading with innovative regulatory thinking that has already inspired emulation in other countries.”
Our work to drive international conversations on appropriate enablers and parameters of digital industries can bring significant benefits to business. For those businesses operating cross border, regulatory divergence can create new costs of doing business (e.g. where businesses are required to report to two different regulatory systems or produce different product information). By influencing the digital regulatory landscape internationally, we can help to smooth regulatory pathways and so increase the opportunities for innovation.
Data gathered from publicly available documents published by the UK Government and Parliament, industry, academia and civil society communities shows that between 2020 and 2023, the DRCF was referenced in over 160 open-source publications (excluding publications by member regulators). Over this time, we have seen the number of references and the extent of discussion grow significantly, demonstrating increasing awareness of the DRCF and its work.
Member regulator impact
Earlier this year the DRCF surveyed colleagues in member regulators to identify both perceptions of the DRCF’s impact and any feedback they may have received from their external contacts. We’ve picked out a few recurring themes from the many in-depth responses we received.
Efficiencies: DRCF enables pooling of resource and expertise on research projects, helping to save the public money and improve the quality of our outputs.
Regulators are able to use the DRCF to pool spending and commission work to explore research questions of joint interest together. For example, joint FCA and CMA consumer research into the use and understanding of generative AI led to significant regulator savings. The FCA and ICO joint research on consumer attitudes towards digital assets also led to substantial savings compared with regulators funding research individually. The DRCF’s horizon scanning activities are an example of work that has harnessed cross-regulator staff skills and insights, creating impactful outputs through a small cross-regulatory team of experts.
The DRCF has enabled many pieces of joint work where drawing from each other’s expertise has supported timely and cost-effective delivery. For example, in setting up the AI and Digital Hub, the CMA and Ofcom were able to draw on the extensive experience of the FCA and ICO in supporting innovators through their regulatory sandboxes and advisory services. In addition, we continue to build DRCF member regulators’ digital capabilities and effectiveness through our Skills & Capabilities workstream. For example, our recent webinar on the DMCC Act, led by the CMA, was attended by 150 members of staff from all four regulators.
DRCF enables engagement that is more efficient for stakeholders and regulators, with the cross pollination creating richer insights.
Engagement: The survey responses emphasised the distinct opportunities the DRCF offers for external stakeholder engagement. Engagement through the DRCF can often reach a wide and diverse audience, consistently cutting across both regulatory remits and international jurisdictions. For example, our April 2024 event hosted with techUK, and the International Network for Digital Regulation Cooperation (INDRC), have each reached a wide set of domestic and international regulators, industry, third sector and government officials. The DRCF Quantum Symposium, held in February 2023 in collaboration with Digital Catapult and the National Quantum Computing Centre, brought together over 170 colleagues from industry, academia, government and the regulatory community.
Value to UK economy: The regulators’ creation and subsequent growth of the DRCF has enhanced the development and implementation of cross-economy digital and AI regulatory policies. The DRCF’s creation of the AI and Digital Hub is delivering an innovative approach to regulatory engagement with tech innovators, with government funding. We will be gathering feedback from the innovators we support through the Hub, with a view to maximising its impact in promote innovation and growth.
Next steps
Our workplan notes our continued commitment to continue to identify and measure the DRCF’s impact for consumers, businesses, and wider society.
We are keen to hear from stakeholders about the impact of the DRCF’s work and the approaches we can take to assess it. Please contact drcf@ofcom.org.uk to share your views.