The European Commission has raised concerns over the potential dominance of big tech companies in the emerging metaverse market. In a consultation paper released on Wednesday, the EU’s executive arm warned that a few large players could become “gatekeepers” of virtual worlds, thereby shutting out European startups and small and medium-sized enterprises (SMEs) from the emerging market.
“There is a risk of having a small number of big players becoming future gatekeepers of virtual worlds, creating market entry barriers and shutting out EU startups and SMEs from this emerging market,” said the draft paper.
EU is set to issue proposals on its new policy for virtual worlds in the coming months, but it’s unlikely that it will include a draft bill. The consultation is open until May 3.
The paper outlines various policy issues for what it calls Web 4.0, where physical and virtual worlds interact immersively, using connected smart devices. It raises issues such as data privacy, cybersecurity, equality, openness, and finance for local businesses.
The concerns raised by the European Commission echo earlier fears raised by antitrust officials regarding potential dominance from tech giants like Meta Platforms. Meta Platforms, formerly known as Facebook, has announced that it plans to rebrand itself as a metaverse company, aiming to create a virtual world where people can socialize, work, and play.
The metaverse has been touted as the next big thing in the tech industry, and the potential benefits of the technology are numerous. For example, the metaverse could create new opportunities for businesses to reach customers, facilitate more immersive experiences, and even provide solutions to real-world problems.
However, there are also concerns that the metaverse could become a breeding ground for monopolies, where a few big tech companies control access to the virtual world. This could be particularly problematic for small businesses and startups, which could struggle to compete in the virtual space.
The potential dominance of big tech companies in the metaverse market also raises concerns about privacy and data protection. The more people engage with virtual environments, the more data they generate, and the more data that big tech companies can collect. This could create significant privacy risks, as companies could potentially use this data to target individuals with personalized advertising or even manipulate their behavior.
The concerns raised by the European Commission highlight the need for policies that promote competition and innovation in the metaverse market. These policies could include measures to support SMEs, improve data protection and privacy, and prevent monopolies from forming.