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EU Parl Watch

Changes between two versions

What changed between the draft committee report and the plenary report

From · draft committee report· 5 Sept 2023

IMCO-PR-751902

Virtual worlds – opportunities, risks and policy implications for the single market

To · plenary report· 5 Dec 2023

A-9-2023-0397

on virtual worlds – opportunities, risks and policy implications for the single market

+18 added · −11 removed · 14 changed paragraphs, packaging included.

Part 2 of 2: EXPLANATORY STATEMENT

EXPLANATORY STATEMENT

12 unchanged paragraphs

Introductory remarks

The Rapporteur welcomes the Commission’s Communication 0442(2023). The development of web 4.0 is an already ongoing phenomenon globally and it entails an enormous economic potential; by 2024, the market size of the metaverse could reach $800 billion, and by 2032 it could account for 2.8 % of global GDP. The European Union must be ready to embrace its development as soon as possible to ensure that it does not lag behind in the global digital race again.

European Way

The Rapporteur believes that the European Union must set the basis to guarantee a smooth transition to the Web 4.0 digital era and avoid committing the same mistakes made in the previous technological transition. The transition towards Web 4.0 must be based on the European Way, respecting the European principles and values such as data protection, privacy and security, and putting citizens in the centre, especially minors. This way of addressing the digital transition has positioned the European Union at the forefront of digital regulation, and most regions of the world look at the European Union as an example to follow. A clear example of this was the GDPR. Nonetheless, the European way of regulating the digital world comes with a lot of bureaucracy and tedious legislative processes, which may hamper innovation and technological development. The Rapporteur calls for the European Union institutions to seek therefore the right balance between a strong legislation that guarantees fundamental rights with a flexible ecosystem that promotes the development of Web 4.0.

Interoperability

The Rapporteur believes that there is a need for virtual world to be based on the principle of interoperability, allowing the interconnection between platforms, systems and devices, so that frictionless exchanges of information and interaction can take place. Interoperability will contribute to create a level playing field for the development of virtual worlds in the European Union. Currently, large tech companies, especially in the United States and in East and Southeast Asia, are leading the development of virtual worlds. Open standards and interoperability of devices and platforms will facilitate access to virtual worlds to all players.

Network capacity

The Rapporteur points out that virtual worlds are going to be very data intensive, and the technologies needed, such as augmented reality, virtual reality and mixed reality require high definition. Data usage is expected to increase twenty-fold during this decade and data traffic is also expected to increase very significantly. Significant investments will therefore be needed to adapt and upgrade telecommunications networks. New technologies will also be needed to enable the new applications that will emerge with virtual worlds. The rapporteur stresses that the European Union will have to find the way to ensure powerful 6G networks that enable virtual worlds.

Accessibility and inclusion

For the Rapporteur, it is important that virtual worlds are an open ecosystem accessible to everyone on equal terms. However, in practice, virtual worlds can pose accessibility and inclusion challenges. Some aspects can determine the access of citizens to virtual worlds, such as their geographical location, socio-economic status, digital skills, or physical condition (people with disabilities may have difficulty accessing virtual worlds if they are not adapted to their needs). The rapporteur calls for these elements to be addressed both, by developers of virtual worlds and by regulators.

Final remarks

The rapporteur believes that the European Union is sufficiently endowed, with legislation such as the Digital Services Act, the Digital Markets Act or the Data Act, to ensure consumer protection and internal market standards in the development of virtual worlds. There is no need for ex novo regulation of virtual worlds for now. He calls the European Commission to monitor the developments around virtual worlds and to conduct regulatory fitness checks regularly of the digital single market and, where necessary, put forward legislative proposals.