A growing number of UK businesses are turning away from traditional Virtual Private Networks (VPNs) and embracing proxy services as their preferred tool for digital operations, amid tightening regulatory scrutiny and increased awareness of performance and compliance risks.
According to new data from Decodo, a leading provider of proxy infrastructure, the UK has seen a 65% rise in proxy users and an 88% increase in proxy-generated traffic over the past year. The trend is being driven by companies seeking more control, flexibility, and regulatory peace of mind when managing sensitive online operations.
“Companies around the globe are getting smarter about how they operate in highly competitive landscapes,” said Vytautas Savickas, CEO at Decodo.
“Instead of just picking the most popular tools, they’re choosing what actually works best for them — tools that offer faster performance, better region-specific access, and fewer compliance hurdles.”
While VPNs encrypt all traffic through a single tunnel to mask IP addresses and secure activity, they often trigger security flags, struggle with geo-restricted content, and face mounting regulatory pressure, particularly in markets like the UK.
In contrast, modern proxy services provide granular control over digital footprints, with location-specific routing, dynamic IP switching, and lower detection risk — key features for sectors relying on competitive intelligence, web scraping, and SEO monitoring.
“The difference is in the flexibility,” said Gabriele Verbickaitė, Product Marketing Manager at Decodo.
“Proxies can be customised to specific workflows — whether that’s tracking prices in multiple currencies, verifying ads, or bypassing bot protection systems — without triggering bans or blacklists.”
UK firms across eCommerce, finance, fintech, digital marketing, and cybersecurity are leading the shift. Common use cases now include:
• Competitor price tracking and product benchmarking
• Localised ad verification and SEO campaign monitoring
• Secure data extraction from geo-restricted sites
• Cybersecurity research and fraud prevention
Companies are also moving beyond basic proxy setups, adopting residential, datacenter, mobile, and ISP proxies, which offer more reliable connectivity and improved location accuracy compared to traditional VPN solutions.
“UK businesses are quickly adopting proxies not just for privacy, but for performance and control,” said Vaidotas Juknys, Head of Commerce at Decodo.
“It’s no longer just about staying anonymous — it’s about ensuring your data pipelines, competitive research, and marketing tools function smoothly.”
The shift comes amid growing speculation that UK regulators may impose stricter controls on VPN usage, raising concerns about network reliability, compliance, and digital continuity.
Proxies are viewed as a more sustainable alternative in this evolving environment, enabling firms to stay ahead of legal uncertainty while maintaining essential access to global data and services.
“This isn’t a passing trend,” added Savickas. “Businesses are making strategic, long-term decisions to build digital resilience now — not after legislation forces their hand.”
Decodo reports that businesses are increasingly educating themselves on the technical differences between VPNs and proxies, conducting hands-on testing, and selecting providers based on performance metrics, integration options, and compliance support.
This rising digital maturity is pushing providers to evolve, with proxy platforms now offering enterprise-grade security, scalable infrastructure, and user-friendly dashboards that integrate with existing workflows.
“The bar for what qualifies as an effective digital tool is rising fast,” said Verbickaitė. “UK firms are among the most discerning adopters of proxy technology globally.”
As the UK’s digital economy continues to evolve, the proxy adoption wave signals a broader shift in how businesses approach data privacy, operational efficiency, and regulatory compliance.
With startups and FTSE-listed companies alike investing in proxy solutions, the move away from VPNs represents more than a tech preference — it reflects a redefinition of digital strategy in an increasingly complex and regulated online landscape.
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Why UK businesses are replacing VPNs with proxies amid rising regulatory scrutiny
