Google and Meta Join Forces to Form Coalition Supporting Open Digital Ecosystems

In a collaborative effort, Google and Meta, along with several other tech companies, have launched the Coalition for Open Digital Ecosystems (CODE). This coalition aims to work closely with academics, policymakers, and ecosystem companies to provide informed thought leadership on the concept of digital openness.

Founding members of CODE include Google, Honor, Lenovo, Lynx, Meta, Motorola, Nothing, Opera, Qualcomm, and Wire. Within CODE, these companies will focus on addressing the implementation of the Digital Markets Act (DMA) and actively participating in ongoing regulatory framework developments within the European Union.

Stan Larroque, Founder of mixed reality startup Lynx and spokesperson for CODE, highlighted the significance of openness in fostering innovation and positively impacting competitiveness in digital ecosystems. The principles outlined by CODE members aim to promote open digital ecosystems through collaborative efforts across industries, advocating for seamless connectivity and interoperability, empowering consumers to easily choose devices and services, and creating an environment of open access.

Discussions are currently underway with potential partners, both within and outside the European Union, with the goal of uniting companies and organizations that share a common commitment to open digital ecosystems. Larroque extended an invitation to others, stating that anyone is welcome to join the coalition as long as they align with its principles.

The formation of the Coalition for Open Digital Ecosystems is prompted by the implementation of the Digital Markets Act (DMA) from May 2023. The DMA regulates tech "gatekeepers," such as Google, Meta, Apple, Amazon, Microsoft, and ByteDance (owner of TikTok), to promote competition, consumer choice, and innovation. While the DMA technically applies to companies with an annual turnover exceeding £5.9 billion ($7.5 billion) or at least 45 million monthly users, its impact will be significant across the entire tech ecosystem.

Non-compliance with DMA regulations can result in fines of up to 10% of a company's worldwide turnover, increasing to 20% for repeated infringements. Additionally, penalties may include requiring a company to sell parts of its business or imposing restrictions on acquisitions for repeated violations.