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#Tech, Media, Telecom

Emerging Virtual Worlds: Implications for Policy and Regulation

  • February 22, 2024
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As virtual worlds emerge as the next probable frontier for the internet, European policy makers are eager to take this opportunity to apply the lessons learnt from the last digital revolution and ensure that European values are the founding principles of these virtual spaces.  

In this new CERRE Tech Media and Telecom report, Fabiana Di Porto (University of Salento), Daniel Foà (LUISS University), and CERRE Research Fellow Sean Ennis (University of East Anglia) aim to identify the most salient features of virtual worlds and the policy issues they might give rise to by clarifying these concepts and arriving at a definition that is fit for policymaking. 

The authors propose a conceptualisation of virtual worlds based on its phases of development and a definition that captures both virtual worlds in their current state as well as their foreseeable features as technology develops. On this basis, the report goes on to describe the potential policy issues raised by virtual worlds which, in many cases, are already covered by existing EU legislation. For those issues falling beyond the scope of existing laws, however, the state of development of virtual worlds, still in their birth stage, cautions against certain types of regulatory interventions given the level of uncertainty in the direction of their development.  

Based on the analysis of virtual world’s features and the policy issues they might raise, the authors propose several recommendations, including: 

  • Definition: Adopt a functional definition of virtual worlds that incorporates features such as mass content creation and interoperability. We also suggest drawing a distinction between the characteristics of the different development phases of virtual worlds (Birth, Infancy, Maturity). 
  • Policy instruments: Consider a plethora of possible policy tools, beyond just rules and harmonised standards, when assessing if and how to address the highlighted policy issues. 
  • Interoperability & standards: Consider promoting forms of harmonised standardization, limited to specific and essential features, that can facilitate the transition of virtual worlds from their current Birth state towards a network of interoperable virtual worlds. Avoid universal interoperability requirements to respect legitimate user preferences favouring differentiation of products and services. 
  • Enforcement: Consider introducing specific rules on enforcement that take into account the transferability of avatars and goods from one virtual world to another.   

This report is part of the ‘Emergence of Virtual Worlds’ project. The ‘Defining Virtual Worlds: Main Features and Regulatory Challenges’ issue paper, published in July 2023, completes this project with an in-depth discussion of definitional issues for virtual worlds. 

Author(s)
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Fabiana Di Porto
Fabiana Di Porto
Associate Professor of Law and Technology
University of Salento

Fabiana Di Porto is an Associate Professor of Law and Technology at the University of Salento (Lecce, Italy), and a Adjunct Professor of Innovation law and Regulation at Luiss Guido Carli University (Rome, Italy). She holds a joint PhD in Law from the Université Robert Schuman of Strasburg and the University of Perugia, and an MSc in Regulation from the London School of Economics. She held visiting positions at the Robert Schuman Center for Research Studies of the European University Institute and at the Hebrew University of Jerusalem (2019/20), both as a Forchheimer Visiting Professor at the Law Faculty and associate at the Federmann Cyber Security Research Center.

Fabiana is the co-editor in chief of the peer-reviewed, A-rated Italian law journal “Concorrenza e mercato” (Competition and the market), and a member of two executive boards: the Academic Society for Competition Law (ASCOLA) and Braincircle Italy. Since 2019, she heads an interdisciplinary research group on Algorithmic Disclosure which explores the use of ML algorithms and NLP tools for regulatory purposes. She is a member of multiple scientific committees, the Global Pandemic Network and the Osservatorio AIR (Regulatory Impact Assessment), and coordinates projects on the use of AI in the judiciary (Lecce) and a multi-stakeholder study group on Metaverse.

She has over 80 articles, 3 books, 5 edited collections and a number of op-eds to her credit. She is a frequent speaker at international conferences and has been audited as a national expert before European and Italian institutions.

Fabiana Di Porto is an Associate Professor of Law and Technology at the University of Salento (Lecce, Italy), and a Adjunct Professor of Innovation law and Regulation at Luiss Guido Carli University (Rome, Italy). She holds a joint PhD in Law from the Université Robert Schuman of Strasburg and the University of Perugia, and an MSc in Regulation from the London School of Economics. She held visiting positions at the Robert Schuman Center for Research Studies of the European University Institute and at the Hebrew University of Jerusalem (2019/20), both as a Forchheimer Visiting Professor at the Law Faculty and associate at the Federmann Cyber Security Research Center.

Fabiana is the co-editor in chief of the peer-reviewed, A-rated Italian law journal “Concorrenza e mercato” (Competition and the market), and a member of two executive boards: the Academic Society for Competition Law (ASCOLA) and Braincircle Italy. Since 2019, she heads an interdisciplinary research group on Algorithmic Disclosure which explores the use of ML algorithms and NLP tools for regulatory purposes. She is a member of multiple scientific committees, the Global Pandemic Network and the Osservatorio AIR (Regulatory Impact Assessment), and coordinates projects on the use of AI in the judiciary (Lecce) and a multi-stakeholder study group on Metaverse.

She has over 80 articles, 3 books, 5 edited collections and a number of op-eds to her credit. She is a frequent speaker at international conferences and has been audited as a national expert before European and Italian institutions.

Sean Ennis
Sean Ennis
Member of the Board and Research Fellow,
Director, Centre for Competition Policy, University of East Anglia

Professor Sean Ennis is an economist, author, and expert. He focuses on company behaviour, competition, and regulation.

Sean Ennis is Professor of Competition Policy and Director of the Centre for Competition Policy at the University of East Anglia.

Previously, he was a Senior Economist in the Competition Division of the OECD. Prior to that, he has served as an Executive Director of the Competition Commission of Mauritius, as an Economist at the European Commission’s DG Competition and at the U.S. Department of Justice’s Antitrust Division.

Over the years, Sean Ennis has published research studies and reports published by economic journals and submitted to the European Parliament, the G20, the OECD and the World Bank. He has co-authored reports for regulatory and government agencies in Australia, Greece, Mexico, Romania, the United Kingdom, and the United States.

He received a BA (Hons) in Economics from King’s College, Cambridge and a PhD in Economics from the University of California at Berkeley.

Professor Sean Ennis is an economist, author, and expert. He focuses on company behaviour, competition, and regulation.

Sean Ennis is Professor of Competition Policy and Director of the Centre for Competition Policy at the University of East Anglia.

Previously, he was a Senior Economist in the Competition Division of the OECD. Prior to that, he has served as an Executive Director of the Competition Commission of Mauritius, as an Economist at the European Commission’s DG Competition and at the U.S. Department of Justice’s Antitrust Division.

Over the years, Sean Ennis has published research studies and reports published by economic journals and submitted to the European Parliament, the G20, the OECD and the World Bank. He has co-authored reports for regulatory and government agencies in Australia, Greece, Mexico, Romania, the United Kingdom, and the United States.

He received a BA (Hons) in Economics from King’s College, Cambridge and a PhD in Economics from the University of California at Berkeley.

Daniel Foà
Daniel Foà
Research Fellow in Economic Law
Bocconi University

Daniel Foà is a Research Fellow in Economic Law at Bocconi University (Milan, Italy), and has a Ph.D. in Law and Business from LUISS Guido Carli. He was awarded the F. Bonelli Scholarship to attend the MSc in Law and Finance at the University of Oxford. Author of scientific contributions in Italian and English, he is a member of the following research centers: BILL-Blockchain, Artificial Intelligence and Digital Innovation Law Lab (LUISS Guido Carli); Law and Technology (UniSalento), and the Young Researchers Group (European Banking Institute).

Daniel Foà is a Research Fellow in Economic Law at Bocconi University (Milan, Italy), and has a Ph.D. in Law and Business from LUISS Guido Carli. He was awarded the F. Bonelli Scholarship to attend the MSc in Law and Finance at the University of Oxford. Author of scientific contributions in Italian and English, he is a member of the following research centers: BILL-Blockchain, Artificial Intelligence and Digital Innovation Law Lab (LUISS Guido Carli); Law and Technology (UniSalento), and the Young Researchers Group (European Banking Institute).

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