US-based tech companies express growing frustration with the increasing regulatory environment in the UK.
The Online Safety Bill, focusing on social media content and encrypted messages, and the Digital Markets Bill are key points of contention, with potential repercussions for industry giants like WhatsApp and Microsoft.
The stringent regulations prompt threats of market withdrawal, raising concerns about the UK's attractiveness for tech investment compared to the more lenient European Union regulations.
Proposed legislation, including amendments to the Investigatory Powers Act, faces resistance from major tech players.
Microsoft's CEO criticizes the UK, suggesting the European Union is a more appealing market, amplifying concerns about the UK's competitiveness.
The Digital Markets Bill faces criticism for concentrating power in a single body, exemplified by the Competition and Markets Authority blocking Microsoft's acquisition.
While some companies open London headquarters, there is a growing perception in Silicon Valley that the UK and EU are attempting to restrain Big Tech out of jealousy.
Prime Minister Rishi Sunak's efforts to attract the AI sector to the UK face challenges as tensions rise between the government and major tech firms.