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In a written statement issued on Wednesday, Ms Morgan said the government would not be "commencing Part 3 of the Digital Economy Act 2017 concerning age verification for online p0rnography".
Instead, she said, p0rn providers would be expected to meet a new "duty of care" to improve online safety. This will be policed by a new online regulator "with strong enforcement powers to deal with non-compliance".
"This course of action will give the regulator discretion on the most effective means for companies to meet their duty of care," she added.