Google, Meta and Qualcomm form partnership in response to EU internet rules

Big Tech companies including Google parent Alphabet, Meta and Qualcomm have formed an alliance to push for open digital ecosystems in response to the European Union's new laws regulating competition in the online world. 

The Coalition for Open Digital Ecosystems (CODE) is described as a platform to promote more open platforms and systems.

The group said it will work with academics, policymakers and companies on digital openness and how this can be achieved in Europe “through the implementation of the Digital Markets Act (DMA) and in future EU regulatory framework developments”.

Alphabet and Meta are two of the six companies named as ‘gatekeepers’ under the EU's Digital Markets Act, which will come into effect in March 2024. The law is part of the bloc’s effort to create a "rulebook" for online platforms, with the goal of creating “a safer and more open digital space, grounded in respect for fundamental rights”.

Under the legislation, platforms identified as gatekeepers must comply with stringent conduct rules, including allowing consumers to install third-party apps or app stores on their operating system and refraining from using data generated by competing businesses on their platforms. They will also be prohibited from ranking their own products or services more favourably than those of third parties in search results.

However, alliances such as CODE could reduce the probability that the Big Tech companies will face tough fines under the regulations, which could be as high as 20 per cent of global revenue.

“CODE’s aim is to work with academics, policymakers and ecosystem companies to provide evidence-based thought leadership on the topic of digital openness and how it can be delivered in Europe, through the implementation of the Digital Markets Act and in future EU regulatory framework developments,” the coalition said. 

Other members of the the CODE coalition include Motorola Solutions, Honor, Lenovo, virtual-reality company Lynx, electronics maker Nothing, software maker Opera and messaging-services provider Wire. 

Lynx founder Stan Larroque said the company had been having conversations in preparation for the implementation of the EU law, with the goal of identifying “what 'good' looks like when it comes to digital ecosystems in Europe, what fosters innovation, and what will positively impact competitiveness”. 

“We think openness is the crucial element,” he added. 

In 2021, it was revealed that 612 companies, groups and associations spent more than €97m (£83m) annually lobbying against EU digital economy policies, specifically the DMA and the Digital Services Act (DSA). Lobbyists were involved in three-quarters of the 270 meetings that commission officials had on the two draft laws.