What’s The New CODE That Google, Meta, Qualcomm And Others Are Pushing?

Recently the European Union made a breakthrough in their efforts to regulate the booming artificial intelligence sector, which includes highly sought after generative AI initiatives.

Just before that, the UK and US made a similar move that outlined guidelines for AI safety. It was backed by 16 other countries!

While some disagree with regulations as they might limit innovations in AI, regulatory moves remain important as they bring order and foster healthy competition within the fast-growing sectors while pushing for responsible innovation.

This is why governing bodies step in to ensure fair play across industries. One such regulation was passed by the EU in 2022, which became applicable in 2023 – The Digital Markets Act (DMA).

While the act itself isn’t news, it’s what the affected parties have proposed that’s making waves. So, what are Big Tech companies pushing for? Let’s explore!

What Does The EU’s DMA Entail?

The Digital Markets Act, AKA Regulation 2022/1925, came into force on November 1, 2022 and became applicable from May 2, 2023.
The act is aimed at ensuring the digital economy remains fair despite competition across industries.
Essentially, the Act states clearly defined objectives that identifies “gatekeepers” and subjects them to a set of obligations and prohibitions (dos and don’ts).
“Gatekeepers” consist of large digital platforms that offer core platform services such as online search engines, app stores, messenger services, etc.
So, for example, gatekeepers will have to allow third parties to inter-operate with their own services (in certain specific situations) or can no longer treat their own services and products more favorably in ranking than similar services or products offered by third parties on their platform.
As per the EU’s website, “The DMA is one of the first regulatory tools to comprehensively regulate the gatekeeper power of the largest digital companies. The DMA complements, but does not change EU competition rules, which continue to apply fully.”
The Act also states that gatekeepers shouldn’t prevent users from uninstalling any preinstalled software or apps.
Previously, the EU commissioned six gatekeepers (Alphabet, Amazon, Apple, ByteDance, Meta and Microsoft) and 22 services offered by them in September 2023, with the requirement to comply with all the provisions of the DMA by March 6, 2024.
Reportedly, failing to comply could result in fines of up to 10% of the gatekeeper’s annual turnover, with repeated failures going up to 20%.

TechDogs-"An Image Showing The Timeline For EU's Digital Markets Act"

Source

What Is The CODE Coalition All About?

In response to the Digital Markets Act, a group of big tech companies have come together to form a coalition to promote and provide open digital ecosystems, appeasing the Act.
Called the Coalition for Open Digital Ecosystems or CODE for short, the group comprises of companies such as Google (Alphabet), Meta, Qualcomm, Honor, Lenovo, Lynx, Motorola, Nothing, Opera and Wire, totaling 10 companies.
Essentially, CODE aims to promote more open platforms and systems, with the end goal of fostering growth, innovation, seamless connectivity, interoperable systems and more in Europe.
Furthermore, the group said it would work with academia, policymakers and other companies to explore and implement digital openness, specifically within the framework of EU’s DMA and future regulation developments.
Regarding CODE and its objectives, Stan Larroque, the Founder of Lynx Mixed Reality, said, “We have had a number of conversations in the past few months about 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.”

Source

Do you think the coalition’s proposed plan would benefit businesses and users? Will we see more businesses coming up with collaborative frameworks to ensure regulation and innovation are balanced responsibly?

Let us know in the comments below!

First published on Thu, Dec 14, 2023

Liked what you read? That’s only the tip of the tech iceberg!

Explore our vast collection of tech articles including introductory guides, product reviews, trends and more, stay up to date with the latest news, relish thought-provoking interviews and the hottest AI blogs, and tickle your funny bone with hilarious tech memes!

Plus, get access to branded insights from industry-leading global brands through informative white papers, engaging case studies, in-depth reports, enlightening videos and exciting events and webinars.

Dive into TechDogs' treasure trove today and Know Your World of technology like never before!

Disclaimer - Reference to any specific product, software or entity does not constitute an endorsement or recommendation by TechDogs nor should any data or content published be relied upon. The views expressed by TechDogs' members and guests are their own and their appearance on our site does not imply an endorsement of them or any entity they represent. Views and opinions expressed by TechDogs' Authors are those of the Authors and do not necessarily reflect the view of TechDogs or any of its officials. While we aim to provide valuable and helpful information, some content on TechDogs' site may not have been thoroughly reviewed for every detail or aspect. We encourage users to verify any information independently where necessary.

Tags:

Enterprise Solutions Open Digital Ecosystems Alphabet Google Meta Qualcomm Honor Lenovo Lynx Motorola Nothing Opera Wire

Join The Discussion

Enterprise Solutions

FeaturedEnterprise Solutions

Enterprise Solutions