The release of the European Commission’s metaverse strategy, originally slated for next week, has been postponed. This strategy is expected to address policy concerns regarding virtual worlds, including property rights, technological standards, and privacy. Although the proposal is not intended to be legislative, it is viewed as a starting point that could potentially lead to stronger action in the future.
The delay in unveiling the metaverse strategy is seen as a missed opportunity to establish a clear regulatory framework for the industry. However, previous experiences with EU regulations in areas like Artificial Intelligence (AI) have shown that regulatory frameworks can be contentious and may have unintended consequences. For instance, the recent Data Act, which aimed to govern data collected by connected devices, raised concerns among supporters of Web3 that it could render smart contracts illegal.
The commission has stressed the importance of the metaverse aligning with “European values” and has expressed concerns about potential dominance by major players and the suppression of competition. Companies like Facebook Meta and Apple have already made significant strides in the metaverse realm. During an April hearing, Meta’s EU Public Policy Director emphasized that the metaverse would be developed by numerous stakeholders, not just one company.
The European Commission’s use of plural terms like “virtual worlds” and “different metaverses” in its discussions suggests that it may envision multiple distinct virtual spaces rather than a single unified metaverse. This raises questions about how interoperability and competition will be addressed within the metaverse.
While some individuals in the digital sector see opportunities in the metaverse, such as online job training and virtual factories, there are also concerns regarding fundamental issues like personal property rights. Legal experts have noted that the terms and conditions of virtual worlds often undermine personal property interests. There is an ongoing debate about how to tackle these problems and whether the metaverse necessitates its own set of rules.
Furthermore, there are apprehensions about the potential intrusiveness of extended reality technologies, such as headsets and glasses, which are central to the metaverse experience. These technologies give rise to issues related to human rights, data collection, and surveillance.
The metaverse is likely to rely on blockchain and cryptocurrencies as the foundational technologies for a decentralized infrastructure. A report from the European Commission’s Joint Research Centre underscores the role of blockchain and cryptocurrencies in supporting the metaverse.
The delay in the European Commission’s metaverse strategy underscores the complexity of policy issues surrounding virtual worlds. While there are opportunities within the metaverse, concerns persist regarding property rights, technological standards, and privacy. The commission’s regulatory approach to the metaverse will need to strike a balance between industry needs and innovation, while safeguarding fundamental rights and fostering competition.
