Emerging Virtual Worlds: Implications for Policy and Regulation

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.  

Summary

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.  

Recommendations

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.   

Project Context

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.

Read more publications on Tech, Media, and Telecommunications.