As the time approaches for the European Commission to unravel its long-awaited strategy on the metaverse, the anticipations are high, albeit marked by some skepticism and uncertainty. Initially expected to unravel next week, the strategy seems to face a delay, fueling further speculation on the key policy issues such as property rights, technological standards, and privacy.
The Commission discloses its stand on prioritizing matters revolving policy rather than proposing a formal bill, raising questions about the plan’s legislative ability. This critical move foreshadows the commencement of policy direction in the blossoming virtual world. Interestingly, this is reminiscent of the Commission’s 2018 strategy on Artificial Intelligence, which subsequently resulted in an AI bill by 2021.
Nevertheless, the waves of change bring both opportunities and challenges. A well-structured regulatory framework, although desirable by the sector, brings potential pitfalls similar to other areas like AI. Moreover, as represented by the recent Data Act, there is a real fear of untoward repercussions, notably the potential restriction of smart contract legality.
The metaverse strategy is positioned to embody what the Commission refers to as “European values” – something that implicitly covers discrimination, safety, and data controls. However, this doesn’t deter from underlying concerns of Big Tech monopolizing this emerging field, seemingly evinced by the transformative moves of Facebook, now Meta, and Apple.
Speaking to this narrative, Meta’s EU Public Policy Director postulated that the metaverse comprises a diverse interrelation of platforms, technologies, and products established by various stakeholders. It’s interesting to note whether the European Commission will affirm this perspective given its less-than-congenial history with Meta.
Delving into the core of the metaverse, we find a realm eschewing fragmentation. Unfortunately, apprehension exists that the Commission, in its quest for regulation, might inadvertently inhibit the creation of an integrated virtual universe, favoring a multitude of separated virtual spheres.
There is an invitation to make sure developers like Meta work within common international standards; however, this path bears its fair share of challenges, such as the potential invocation of the EU’s own antitrust rules.
And while heralded opportunities abound, from online job training to virtual factories, other imperative matters like basic rights stand at the crossroads. The primacy of online terms and conditions over personal property rights and the monumental ramifications this bears is a looming concern.
The metaverse is not being built without a regulatory guide, as cited by Meta. The company prompts the Commission to exercise a case-by-case problem-solving strategy with an evidence-based approach should unique issues arise in the evolution of the metaverse.
The far-reaching implications of invasive tech such as headsets and glasses and their potential for data collection and surveillance, even reaching as far as people’s thoughts and emotions, raises more alarm bells.
Undoubtedly, these unfolding regulatory chapters will be pivotal, especially to advocates of blockchain and cryptocurrencies. A recent report by the Commission’s Joint Research Centre underscores the belief that these are the likely fundamental components of the metaverse. Consequently, it emphasizes the profound risk that metaverse regulation may impart to the crypto universe.
Source: Coindesk
