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Comment & Opinion

Technology & Digital round-up: December 2025

“Welcome to the December 2025 edition of our Technology & Digital round-up. This month we’re looking at CMA enforcement action, generative AI liability, and Ofcom fines under the Online Safety Act.”

– Sally Mewies, Partner and Head of Technology & Digital

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Get in touch with Sally Mewies, Andrew Northage, Nick Stubbs, Paul Armstrong, Luke Jackson or any member of our Technology & Digital team if you have any queries or need advice or assistance.

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Here’s your top stories for December.

 

#1: CMA launches first DMCCA enforcement drive to tackle unfair online pricing practices

The Competition and Markets Authority (CMA) has launched a major consumer protection initiative targeting unfair online pricing practices under the new Digital Markets, Competition and Consumers Act 2024 (DMCCA). Following a review of over 400 businesses across 19 sectors, the CMA identified concerns about tactics such as drip pricing (adding mandatory fees late in the purchase process) and misleading countdown timers; both tactics being banned under the new regime.

As part of its enforcement drive, the CMA has:

  • Opened investigations into eight businesses: StubHub, viagogo, AA Driving School, BSM Driving School, Gold’s Gym, Wayfair, Appliances Direct, and Marks Electrical. These cases focus on hidden fees, misleading time-limited offers, and default opt-ins for optional services.
  • Issued advisory letters to 100 firms across 14 sectors (e.g., travel, fitness, homeware, ticketing) warning them to review practices.
  • Published finalised guidance on price transparency to help businesses comply.

This marks the first enforcement action under the DMCCA, aimed at ensuring consumers see accurate prices and genuine offers when shopping online. Businesses selling online must urgently review pricing practices to ensure compliance with the DMCCA. Failure to provide transparent pricing or engaging in banned tactics could result in significant financial penalties and reputational damage.

“People across the UK deserve a fair deal. Whether you’re buying tickets, booking driving lessons, or signing up for a gym, you should know exactly what you’re paying upfront. Alongside helping businesses comply, we will take swift action where we suspect serious breaches. This is just the start -any business breaking consumer law should be in no doubt that we will stamp out illegal conduct and protect consumers and fair-dealing businesses.”

Luke Jackson

– Luke Jackson, Director, Commercial

 

#2: UK court delivers landmark ruling on generative AI and IP rights

The Getty Images v Stability AI judgment, delivered on 4 November 2025, is one of the first UK rulings on intellectual property issues involving generative AI. Getty alleged copyright and trade mark infringement by Stability AI’s Stable Diffusion models. Getty’s secondary copyright claims failed because the models do not store or reproduce copyrighted works, meaning they were not “infringing copies” under the Copyright, Designs and Patents Act 1988.

However, Getty succeeded partially on trade mark infringement as some older model versions generated images with iStock watermarks, breaching sections 10(1) and 10(2) of the Trade Marks Act 1994. The case highlights key challenges for rights holders and developers; however, it leaves unresolved whether training AI on copyrighted material constitutes infringement, signalling that legislative intervention may be required.

“This judgment underscores the complexity of applying existing IP laws to generative AI technologies. While the court clarified that model training does not automatically amount to copyright infringement, the partial success on trademark claims signals that developers must remain vigilant about outputs. The unresolved question of whether training on copyrighted material breaches the law suggests that legislative reform may be inevitable.”

Nick Stubbs black&white SMALL for TENDER digital version

Nick Stubbs, Partner, Commercial

 

#3: Ofcom fines nudification site for age-check failures under Online Safety Act

Ofcom has fined Itai Tech Ltd £50,000 for failing to implement effective age checks on its nudification site, Undress.cc, in breach of the Online Safety Act 2023. An additional £5,000 penalty was imposed for not complying with a statutory information request. The Act requires robust age assurance, such as verification or estimation, to prevent children from accessing pornographic content. Ofcom’s enforcement programme has also launched investigations into 20 more adult sites operated by five companies, prioritising those posing the greatest risk of harm.

Ofcom has also provided an update on its investigation into an online suicide forum under the UK’s Online Safety Act 2023. Although the forum initially blocked UK IP addresses in July 2025, evidence from Samaritans revealed that UK users could still access the site via a mirror domain until early November.

Ofcom verified this and expressed concern that the forum’s geoblocking measures were ineffective or inconsistently maintained. Ofcom reiterated that services must maintain access restrictions and avoid promoting circumvention methods.

“These enforcement actions demonstrate Ofcom’s determination to hold online services accountable under the Online Safety Act. Age assurance is not optional – it is a legal requirement to protect children from harmful content. Companies that fail to implement robust checks or attempt to evade compliance should expect significant penalties and ongoing scrutiny.”

Paul Armstrong, Director, Commercial

More recent updates…

  • A major Cloudflare outage disrupted internet services globally, causing widespread error messages on numerous websites and platforms until the issue was resolved.
  • The ICO welcomes the introduction of the Cyber Security and Resilience (Network and Information Systems) Bill, describing it as a crucial step to strengthen the UK’s cyber resilience and better protect personal data.
  • Ofcom’s latest Connected Nations report shows Northern Ireland leading the UK in full-fibre broadband coverage, with 95% of homes able to access full fibre and 96% having gigabit-capable connections when cable is included.

…and in other news

  • Sarah Cardell, CMA Chief Executive, outlined the authority’s 2026 to 2029 strategy to promote competition and protect consumers, aiming to drive economic growth and household prosperity. Key priorities include embedding the 4Ps framework (Pace, Predictability, Proportionality, Process), enabling pro-growth business collaboration, strengthening consumer protection under the DMCCA, advising government on pro-competitive interventions, and fostering a regulatory environment that attracts investment.
  • Using Formula 1 technology on Great Northern Railway (GNR) trains is expected to deliver faster, more reliable Wi-Fi by combining 5G signals with low Earth orbit satellites and advanced switching techniques, reducing dropouts and dead zones, improving passenger experience for work and leisure, and laying the foundation for a broader digital transport infrastructure.
  • Liz Kendall warned that Ofcom risks losing public trust over its handling of online harms regulation, urging the regulator to act decisively to protect users and enforce accountability for tech platforms.
  • Science Minister Lord Vallance has announced that the UK government is funding research into innovative tools to identify special educational needs (SEND) earlier, aiming to enable timely interventions that improve outcomes for children and reduce long-term challenges in education.
  • The National Cyber Security Centre has released an article warning online shoppers to stay vigilant against holiday scams by following the NCSC’s Stop! Think Fraud guidance, which includes checking retailer legitimacy, enabling two-step verification, paying securely, and avoiding phishing links, as cyber criminals increasingly use tactics like urgency and scarcity to steal money and personal information
  • The Government has announced a £155 million UK government investment to strengthen the resilience of Positioning, Navigation and Timing (PNT) systems—critical for services like GPS, finance, and communications—by developing technologies that reduce reliance on satellites and provide early warnings against threats such as jamming, spoofing, and natural disruptions.

How we can support you

If you have queries about any of the points covered in this edition of the Technology & Digital round-up, or need further advice or assistance, please get in touch with Sally, Andrew, Nick, Paul, Luke or one of our Technology & Digital experts.

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