Tech companies are set to be boosted by a new joint taskforce set up by Britain and France, Chancellor George Osborne has announced.
The deal, which is planned to unlock up to £42 billion of economic growth across Europe, will enhance co-operation on making government data accessible, establishing a set of principles on how small and medium sized businesses use data, and make it easier for data to be moved around.
The Treasury said data-driven innovations were a major source of economic growth around the world, with Britain and France already at the forefront of the sector.
The deal is set to boost prospects of creating a single market in the digital sector across the European Union.
Speaking from the launch in Paris, Mr Osborne said: "I am delighted to announce the creation of a new joint UK-France taskforce to lead the way in unlocking the significant economic benefits offered by the digital economy.
"In the UK our digital industries contribute over £113 billion to the economy and this taskforce will consider ways to accelerate growth in this flourishing sector."
French economy minister Emmanuel Macron said: "France and the UK are at the forefront of the digital economy.
"We need to join forces to unleash its potential by setting up a fair and balanced framework which benefits innovators, companies and consumers."