The European Commission joined forces with major technology firms including Apple, Facebook and Google on Thursday to improve the protection of children online.
The coalition, which includes 28 companies, will develop an age-based online ratings system and aims to strengthen privacy settings. It also plans by the end of next year to make it easier to report inappropriate content.
Other measures include improving parental controls and enhancing cooperation among law enforcement and hotline authorities to remove online material showing sexual abuse.
This new coalition should provide both children and parents with transparent and consistent protection tools to make the most of the online world, said Neelie Kroes, the EU commissioner who deals with digital technology policy.
The formation of the coalition follows a report by the European Commission in June, which found 14 leading social networking sites, such as Facebook, inadequately protected children's profiles and data.
British-based group Childnet International, which aims to protect children online, said the coalition was a good start.
We welcome this initiative and we are hopeful of what it might achieve, said Childnet International Chief Executive Will Gardner. We are looking at a statement of purpose, this is the beginning.
Many children become active online as early as seven and 38 percent of 9- to 12-year-olds have their own social networking profiles, according to EU research. Over 30 percent of children access the Internet via a mobile device and 26 percent via video game consoles.
Other companies in the coalition include Apple, BSkyB, BT, Deutsche Telekom AG, Nintendo, Nokia and Orange.
(Reporting By Christopher Le Coq; Editing by Rex Merrifield and Sophie Hares)