Why UK businesses use proxy instead of VPNs in the rising scope of regulatory scrutiny
More and more UK businesses are deviating from traditional virtual private networks (VPNs) and using proxy services as the preferred tool for their digital operations, amid tightening regulatory scrutiny and increasing awareness of performance and compliance risks.
According to new data from Decodo, a leading provider of proxy infrastructure, the UK’s proxy users increased by 65%, and the traffic generated by proxy has increased by 88% over the past year. Companies seeking more control, flexibility and regulatory peace of mind are driving this trend when managing sensitive online operations.
“Companies around the world have become smarter about how they operate in a competitive landscape,” said Vytautas Savickas, CEO of Decodo.
“They chose not only the most popular tools, but also the one that suits them best – tools that offer faster performance, better area access and fewer compliance barriers.”
While VPNs encrypt all traffic through a single tunnel to mask IP addresses and security activities, they often trigger security signs, fight geo-restricted content, and face increasing regulatory pressure, especially in markets such as the UK.
In contrast, modern proxy services offer granular control of digital footprints with location-specific routing, dynamic IP switches and lower detection risks – key features of departments relying on competitive intelligence, network scratching and SEO monitoring.
“The difference is flexibility,” said Gabriele Verbickaitė, product marketing manager at Decodo.
“Agents can be customized to a specific workflow, whether it’s tracking prices in multiple currencies, verifying ads, or bypassing bot protection systems without triggering bans or blacklists.”
British companies are leading the transition in e-commerce, finance, fintech, digital marketing and cybersecurity. Common use cases now include:
• Competitor price tracking and product benchmarking
• Local ad verification and SEO campaign monitoring
•Security data extraction from geo-restricted locations
•Cybersecurity research and fraud prevention
The company also goes beyond basic proxy setups to adopt residential, data center, mobile devices and ISP proxying, which provide more reliable connectivity and improved location accuracy compared to traditional VPN solutions.
Vaidotas Juknys, Decodo Business Director, said: “British businesses are not only quick to adopt agents for privacy, but also for performance and control.”
“It’s no longer just staying anonymous – it’s about ensuring your data pipeline, competitive research and marketing tools run smoothly.”
The shift is due to growing speculation that UK regulators may impose tighter controls on VPN usage, raising concerns about network reliability, compliance and digital continuity.
In this evolving environment, agents are seen as a more sustainable alternative, enabling companies to maintain legal uncertainty while maintaining access to basic access to global data and services.
“This is not a trend in the past,” Savickas added. “Businesses are now making strategic long-term decisions to build digital resilience, not after legislation forces their hands.”
Decodo reports that businesses are increasingly educating themselves about the technological differences between VPNs and proxy, conducting hands-on testing and providers based on performance metrics, integration selection and compliance support.
This rising digital maturity is driving provider growth, while the proxy platform now offers enterprise-grade security, scalable infrastructure, and user-friendly dashboards that integrate with existing workflows.
“The criteria for eligible to be an effective digital tool are rising rapidly,” Verbickaitė said. “British companies are one of the most discerning adopters of agency technology worldwide.”
As the UK’s digital economy continues to grow, the wave of agency adoption shows how businesses handle data privacy, operational efficiency and regulatory compliance have undergone a bigger shift.
With startups and publicly traded companies investing in proxy solutions, the shift away from VPNs represents not only technology preferences—it reflects the redefinition of digital strategies in an increasingly complex and regulated online landscape.
