As the virtual world continues to grow and expand, there is a risk that a few powerful companies could control access to this new realm. This could pose serious implications for competition and innovation, and the EU is out to prevent the emergence of such gatekeepers.
According to the European Commission, big players in the metaverse space could dominate the metaverse, preventing local companies from taking a strong position in the market. The Commission warned on Wednesday in a consultation on its new policy for the virtual world.
The EU’s executive arm in a few months’ time is set to issue proposals but draft Bill will likely not be included. The EU is also calling for feedback until May 3rd.
According to the paper, as virtual worlds continue to grow in popularity, there’s a concern that only a few large players will dominate the market. This could result in smaller EU start-ups and SMEs being excluded from the emerging virtual reality landscape. The draft suggests that these fears echo earlier concerns raised by antitrust officials about potential monopolies from tech giants such as Meta.
The paper outlines key policy challenges for the immersive world of Web 4.0, exploring how smart devices are connecting the physical and virtual landscapes. The guide raises important points in regard to data privacy, equality, cybersecurity, openness, and finance for small businesses.
With the EU’s recent passing of the Digital Markets Act, internet companies like Google, Amazon, and Meta will be under greater scrutiny to prevent potential anticompetitive behavior. Nevertheless, there is a growing concern that such trends could emerge in future incarnations of the digital economy.
The commission had earlier passed a bill approving additional data controls that may call for smart contacts to have a kill switch to stop any activity. Although the bill didn’t specifically target the crypto industry, rather its focus is on Internet of Things devices.
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