The advent of Web 4.0 through the notion of a metaverse – an amalgamation of physical and virtual worlds – is set to usher in a new era of connectivity and communication. With the new technology creating wide-reaching socio-economic impacts, the European Union (EU) recently expressed concern at the risk of having a small number of large players acting as gatekeepers of this emerging market.
In a move to establish guidelines for such a domain, the European Commission’s initiative of recommending a policy for virtual worlds is the first step in planning for a holistic approach within the metaverse.
The paper states those policy issues that need to be addressed include equality, data privacy, cybersecurity, openness, finance and other related aspects, which shall be applicable to national as well as international virtual worlds. The paper adds that by encouraging innovation and competition, the EU hopes to create an attractive environment for local businesses.
The European Commission aims to address the potential rise of tech monopolies within the metaverse by introducing certain initial regulatory measures. The main part of this being the Digital Markets Act which calls for restraining monopoly activities from some of the leading web giants. This act seeks to replace the past installment of antitrust rulings in the first two iterations of the internet, in what the Commission terms as a proactive approach.
In their call for evidence, the Commission invites all stakeholders to provide feedback until May 3 in addressing the policy issues outlined in their paper. The Commission states that by creating an attractive environment, the plan should also allow for open innovation and enable SMEs to act as serious competitors.
The European Union’s revamp of digital market regulation may prove to be the only obstacle in stopping online giants from becoming dictatorial gatekeepers of the metaverse—a justified concern as is evident from their attempts at conquering the previous internet iterations. The Commission's call for evidence reflects the need for stakeholders to provide inputs in ensuring the EU's overarching goals of having an open, diversified, and driven competition environment in virtual worlds are met.
Natalie Harris
- 2023-04-06
European Union’s Drive for Open and Diversified Competition in the Metaverse
The European Union (EU) recently expressed concern of tech monopolies taking over the new metaverse and released an initiative to create guidelines. This article outlines their overarching goals in creating a diversified, driven competition, and open innovation environment.
