EU antitrust chief Margrethe Vestager stated that the metaverse has not raised concerns or the need for legislation so far. She emphasized that the European Commission is closely monitoring developments but sees no need for regulation at this stage.
Vestager’s remarks coincide with the metaverse being in its early stages of development. The metaverse is envisioned as an immersive virtual world, interconnected and accessible through virtual reality (VR) and augmented reality (AR) headsets.
Certain experts have cautioned that the metaverse could present antitrust challenges by fostering virtual world monopolies. Nevertheless, Margrethe Vestager stated that the Commission has yet to observe any evidence of such occurrences.
Vestager affirmed, “We won’t wait for problems to emerge before taking action,” while also expressing the desire not to hastily regulate a nascent concept.
Vestager’s comments indicate the European Commission’s cautious approach to metaverse regulation. However, it is expected that the Commission will actively monitor metaverse advancements and intervene with regulations if necessary.
The metaverse presents several potential challenges for antitrust regulators. One such challenge is data collection and privacy. With the vast amount of data collected in the metaverse, concerns about user privacy may arise. This data could be utilized to track user behavior and target them with tailored advertising.
Another challenge is the concentration of market power. In the metaverse, a few dominant companies could wield excessive market power. This concentration may result in higher prices for users and hinder innovation within the metaverse ecosystem.
Additionally, interoperability poses a significant challenge. The metaverse could suffer from fragmentation, with different companies developing their own virtual worlds that lack compatibility. As a result, users may encounter difficulties when trying to navigate between different virtual worlds.
