What changed

Follow up to the European Parliament non-legislative resolution on virtual worlds: opportunities, risks and policy implications for the Single Market

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

Rapporteur: Pablo ARIAS ECHEVERRÍA (EP / ES)

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

Reference numbers: 2022/2198 (INI) / T9-0032/2024/ A9-0397/2023

(2022/2198(INI))

Date of adoption of the resolution: 17 January 2024

– having regard to Article 24 of the EU Charter of Fundamental Rights and the United Nations Convention on the Rights of the Child as elaborated upon in its General Comment No. 25 on children’s rights in relation to the digital environment,

Competent Parliamentary Committee: Committee on Internal Market and Consumer Protection (IMCO)

– having regard to Rule 54 of its Rules of Procedure,

Brief analysis and assessment of the resolution and requests made in it:

– having regard to the opinion of the Committee on Culture and Education,

This resolution summarises the main opportunities, risks and policy implications of Web 4.0 and virtual worlds, in the context of the internal market. It highlights the wealth of opportunities in fields such as medicine, culture, education, the economy, security and law enforcement and the potential to contribute to solving global problems related to poverty and inequality. It also stresses that virtual worlds can pose significant risks in various domains, such as mental health, competition, data protection, and consumer protection, including for vulnerable groups such as minors, the elderly, and people with disabilities, intellectual property rights, cybersecurity measures and fundamental human rights.

– having regard to the report of the Committee on the Internal Market and Consumer Protection (A9-0397/2023),

The resolution welcomes the Commission Communication of 11 July 2023 entitled ‘An EU initiative on Web 4.0 and virtual worlds: a head start in the next technological transition’ (COM(2023)442) and underlines that any EU strategy must be sustainable and human-centric, while protecting the values of the European Union.

A. whereas the world is undergoing an unprecedented transformation marked by digitalisation, which is imprinting profound changes in all spheres of our economic, political and social life;

It stresses the importance of making a careful assessment of all the issues relating to the development of virtual worlds and their effective coverage by existing legislation, such as the Digital Services Act (DSA), the Digital Markets Act (DMA), and the Data Act. It also calls on the Commission to further analyse questions such as digital identity in virtual worlds, the skills gap, protecting user’s personal data and privacy, children’s rights, health concerns, the need for high-performing infrastructures and environmental concerns.

B. whereas digitalisation brings with it a wealth of opportunities in fields such as medicine, culture, education, the economy, security and law enforcement and has the potential to contribute to solving global problems related to poverty and inequality, sustainability as well as to democratise processes and access to education and knowledge; whereas it also offers new possibilities to advance the transition process towards more sustainable and just societies if guided in the right direction by appropriate policies; whereas addressing the digital divide, which currently affects 46 % of Europeans, still requires significant investment;

Response to the requests and overview of the action taken, or intended to be taken, by the Commission:

C. whereas the digital transformation also entails significant challenges that might lead us to review the concepts and norms that have hitherto underpinned our economic and social progress while keeping intact our fundamental core principles and values such as cultural policies and copyright law; whereas excessive market concentration has been observed in the digital economy; stresses the need to reduce technological dependencies on non-EU countries by moving towards a European approach to virtual worlds, including both larger and smaller operators at various levels of the value chain;

(Paragraph 4) The Commission agrees on the importance of a true digital single market to contribute decisively to the development of virtual worlds and strengthen the EU’s ability to compete globally. Over the last few years, the instruments for a well-functioning digital single market have been considerably reinforced with legislative initiatives such as the Artificial Intelligence (AI) Act, the Data Act, the Digital Services Act, the Digital Markets Act and Cybersecurity legislation. In relation to the competition elements, calls for contribution on Virtual Worlds and on Generative Artificial Intelligence have been launched with a forward-looking analysis of technology and market trends.

D. whereas in the EU, awareness of both the potential of emerging technologies and the challenges posed by the accumulation of power by digital giants has triggered the need to re-establish a level playing field in the digital market, leading to political and legislative action; whereas the EU institutions have made the green and digital transitions a priority area of action and policy formulation, establishing rules in line with EU values, principles of equity and fair competition, and fundamental rights, while ensuring strategic autonomy and independence;

(Paragraph 5) The Commission considers that the EU already has a strong regulatory framework in place, the provisions of which also cover virtual worlds. At the same time, it is important to follow future developments of the very fast evolving technological landscape. The Commission agrees regarding the importance of regular evaluations to ensure that legislation remains fit for purpose in the digital environment, in line with the Better Regulation guidelines. For example, the ongoing Fitness Check of EU consumer law on digital fairness, as a first step, will examine the adequacy of the existing horizontal consumer protection rules in light of technological developments.

E. whereas the transition to Web 4.0 and the development of virtual worlds may be a significant part of the future of digitalisation and may be one of the significant potential building blocks for the completion of the digital single market; considers that digitalisation, integral to Web 4.0, should be harmoniously integrated into the Digital Single Market without creating barriers; acknowledges that while virtual worlds can complement the real world as an additional tool, they should not replace it and should not lead to exclusion of consumers;

(Paragraph 6) The Commission acknowledges the need to monitor the development of virtual worlds, initiated through monitoring mechanisms (such as through a future observatory for virtual worlds) detailed within Commission communication COM(2023) 442, and intends to report two years after the adoption of the initiative.

F. Whereas virtual worlds pose significant risks in various domains, such as mental health, competition, data protection, and consumer protection, including for vulnerable groups such as minors, the elderly, and people with disabilities; whereas further research in this field is also needed; whereas virtual worlds also present multifaceted challenges that include but are not limited to user-generated content, intellectual property rights, cybersecurity measures and fundamental human rights; whereas the experience of virtual worlds can pose challenges to women; according to the European Institute for Gender Equality (EIGE), one in 10 women have experienced some form of cyber violence since the age of 15; whereas the UN Special Rapporteur on Violence Against Women has stated that new technologies ‘will inevitably give rise to different and new manifestations of online violence against women’; considers that the imbalance between the online consumer and trader might be exacerbated in virtual worlds; underlines that technologies must not be designed to manipulate consumers’ behaviour; notes the growing number and variety of products, including financial products, linked to virtual worlds such as buying virtual assets, avatars, and others; highlights the need to have targeted studies and extended consultation with experts in different fields, from economy to psychology to neuro-specialists, in order to develop a legislative framework fit for the purpose; welcomes the work of the industry in this regards while underlining that more can be done;

(Paragraph 7) The Commission acknowledges the potential of generative AI for creating and enriching virtual environments. The Commission is setting-up a European Artificial Intelligence Office (‘AI Office’) to build capacity and expertise on AI at Union level. To that end, it has adopted an establishing decision on 24 January 2024 (C(2024) 390 final). Among other tasks, such as the implementation of the forthcoming Artificial Intelligence Act and international cooperation on AI, the AI Office will be tasked to monitor the evolution of AI markets and technologies. It will collaborate and share these findings with the relevant Union bodies and Commission services responsible for virtual worlds policy development.

General principles

(Paragraph 10) The Commission strongly supports the need for the EU to take the lead in shaping virtual worlds as ecosystems that respect and promote EU values, fundamental rights, and the highest level of consumer protection. Europe has a strong industrial potential in the field of virtual worlds and Web 4.0. The forthcoming co-programmed Virtual Worlds Partnership will shape the next frontier of virtual worlds, based on common European values, principles and strategic interests. The focus will also be on creating business opportunities for companies of all sizes.

1. Welcomes the Commission communication of 11 July 2023 entitled ‘An EU initiative on Web 4.0 and virtual worlds: a head start in the next technological transition’ (COM(2023)0442); underlines that any strategy must be sustainable and human-centric, while protecting the values of the European Union;

(Paragraph 13) The Commission is equally convinced of the utmost importance for virtual worlds to be interoperable. The Commission will ask for an analysis and recommendations on standards for “Secure, interoperable virtual and augmented reality ecosystem and virtual economy”, as part of the relevant action in the 2024 annual Union work programme for European standardisation (C(2024)541). The Digital Markets Act, which contains interoperability obligations, will prevent gatekeepers from imposing unfair conditions on businesses and end users and at ensuring the openness of important digital services.

2. Notes the challenges associated with the absence of a universally recognised or agreed definition of virtual worlds, which also leads to a lack of policy coordination at the national level and above; acknowledges the Commission’s efforts to define virtual worlds in a way that is aligned with consensual characteristics such as immersivity, synchronicity and persistence;

(Paragraph 14) The Commission adheres fully to the idea of making virtual worlds accessible for all. Therefore, it aims for a Web 4.0 and virtual worlds where sustainability, inclusion and accessibility are at the core of technological developments (design for all), in line with the Strategy for the Rights of Persons with Disabilities 2021-2030. This principle is also an outcome of the Citizens’ Panel in its Recommendation 20. Regarding the need to recognise the specific needs and rights of children, the Commission is in favour of putting a special focus on children as an important user group. The Commission will make resources on virtual environments available to empower young people and their parents under the Better Internet for Kids strategy.

3. Underlines the need to make a clear difference between the existing digital instruments, and other possible emerging technologies, based on research, strong scientific studies and technical specificities, while exploring the need for standardisation of the sector;

(Paragraph 15) The Commission welcomes the idea of assessing the potential use of the European Digital Identity (eID) and wallet in virtual worlds, which is also echoed by the Citizens Panel’ Recommendation 19 “Develop regulations on digital identity and on when to allow and secure citizens’ right to be anonymous”. It will allow people and businesses to identify themselves in virtual worlds in a secure, convenient and uniform way across the EU.

Internal market and consumer protection

(Paragraphs 16 and 17) The General Data Protection Regulation (GDPR) is technology-neutral and principles-based and takes a risk-based approach. These features are key for the application of GDPR to various technological developments. As the Commission stated in its Communication, the GDPR fully applies in virtual worlds, including specific rules on processing of sensitive personal data (e.g. biometric data for purpose of unique identification). The GDPR also provides for right to be forgotten/erasure of personal data. The compliance with the GDPR is supervised by the data protection authorities.

4. Observes that, although the European Commission’s communication does not yet indicate the need for precise legislative action, it is nevertheless important to make a careful assessment of all the issues relating to the development of virtual worlds and their effective coverage by existing legislation; underlines that a true digital single market can contribute decisively to the development of virtual worlds and strengthen the EU’s ability to compete globally; considers that a clear, comprehensive, regulatory framework is of vital importance, particularly when the technology reaches maturity, to ensure a level playing field that harnesses the full potential of virtual worlds and enables their economic growth;

As outlined in its Communication, the Commission will set-up specific measures to monitor the developments in virtual worlds, including on their impact for the right to the protection of personal data. Finally, it is to note that the Commission reports on the application of the GDPR every four years. The second report is due this year.

5. Welcomes the latest regulatory developments in this regard, such as the Digital Services Act (Regulation (EU) 2022/2065), the Digital Markets Act (Regulation (EU) 2022/1925), and the Data Act (2022/0047(COD)) that is about to be endorsed by the Council and the European Parliament; notes also the proposal for an artificial intelligence act, and cyber resilience act and the ongoing negotiations thereon; considers that the Commission should conduct regular checks on the adequacy and consistency of the legislative framework of the digital single market, to address new opportunities, risks or other issues that may arise with virtual worlds and where necessary, put forward legislative proposals; believes that the outcome of such checks should be made public;

(Paragraph 18) The Commission agrees on the need for research on potential health issues that may arise from interacting with virtual worlds, and the need for research on the impact of technologies that imply direct and permanent modifications to the body. To this effect, a study has been launched entitled “Virtual worlds: how do they affect our health and well-being?”, the outcome of which can be an important starting point in understanding the various health implications of this technology.

6. Welcomes the Commission’s commitment to monitor the development of virtual worlds; invites the Commission to draft a report on this subject every two years and to forward it to Parliament and the Council; asks the Commission to pay attention to the potential emergence of problems in the Web 4.0 that already exist in the Web 3.0, such as the proliferation of disinformation, spread of illegal content, digital identity theft, cybercrime, infringement of intellectual property rights, cyberterrorism, misuse of personal data, manipulative behavioural or addictive design of digital services, fraud, online terrorist content, sexual abuse of minors and cyberbullying, among others, and to consider relevant existing, such as the Digital Services Act, and forthcoming legislation which aim to address these issues;

(Paragraph 20) The Commission is committed to addressing the skills gaps. Dedicated calls will be launched under the Digital Europe Programme to support the education and training of Virtual worlds specialists and audiovisual professionals. The Commission is also committed to pay special attention to the specific needs, vulnerabilities and the rights of children in virtual worlds. Dedicated resources will be available to empower children and their parents under the BIK strategy.

7. Points to the significant economic potential of virtual worlds, and the growing needs for investment in the necessary infrastructure and in related research, innovation, and re- and up-skilling; stresses that the overall costs of such investments should aim to have a neutral impact on final consumer prices; acknowledges the need to increase available resources at EU-level to fulfil these objectives; highlights the role of virtual reality (VR), augmented reality (AR), and mixed reality (XR) as crucial technologies for the development and growth of virtual worlds, providing users with immersive and interactive experiences, while also noting that industrial applications and consumer use present different challenges and require differentiated approaches; notes also the development of some AI models such as generative AI can play a crucial role in creating and enriching virtual environments; in this regard, call on the Commission to closely monitor also the rapid development of this technology and its impact in the digital ecosystem;

(Paragraph 22) The Commission acknowledges the need for highly performing infrastructure to support the development and functioning of Web 4.0 and virtual worlds. The development of smarter, flexible, and innovative services depends on the availability of ultra-fast and reliable connectivity. The Digital Decade connectivity goals aim at high-speed internet coverage by 2025 and gigabit connectivity by 2030, striving for making Europe the most connected continent by 2030. A Commission white paper on the future of telecommunications adopted on 21 February 2024, addressing the relevant issues.

8. Signals also the potential positive impact that these developments could have on employment, including the creation of new jobs in domains such as virtual world architecture or content creation; stresses the need to invest in reskilling initiatives to educate the existing workforce in the EU, paying specific attention to under-represented groups in this sector; highlights the importance of investing in and promoting the development of appropriate skills to ensure the supply of talented and skilled workers fit for these jobs in the EU, as well as of creating appealing conditions to retain EU talent, attract foreign talent, and promote entrepreneurship and innovation in the territory of the EU;

(Paragraph 25) The Commission recognises the importance of increasing the efficiency and raising consumer awareness on the environmental impact and sustainability of new technologies. According to latest figures, energy consumption of data centres will account for 3.2% of EU energy demand by 2030 unless action is taken. As data centres workload grows, their adverse environmental effects on resource consumption must be mitigated. The Commission aims to make data centres climate-neutral, highly energy-efficient, and sustainable by 2030. Measures to achieve this objective include the revision of the Energy Efficiency Directive, the Code of Conduct for energy efficient data centres, the Taxonomy Regulation, among others. At the same time, the Commission underlines that virtual worlds can contribute to combat climate change. Destination Earth, a flagship initiative of the Commission, will develop a highly accurate digital model of the Earth on a global scale. It will monitor, simulate and predict the interaction between natural phenomena and human activities. It will contribute to achieving the objectives of the twin transition, green and digital.

Signals the positive as well as the negative potential impact of the new technologies and products on consumers, on their health, on their social and economic life; highlights the potential of virtual worlds in industrial and professional settings, in particular for training and prototyping, while acknowledging broader impacts on workers; stresses the need to ensure compliance with labour rights and a high level of worker protection;

9. Recalls that while most companies that are leading the development of virtual worlds are established outside the EU, there exists a vibrant, evolving ecosystem within the EU; emphasises the need for the EU to take the lead in shaping virtual worlds as ecosystems that respect and promote EU values, fundamental rights, and the highest level of consumer protection; signals the importance of fostering a level playing field that promotes the expansion of European small and medium-sized enterprises and the emergence of competitive European companies, as well as decentralised and interoperable ecosystems;

Underlines the necessity of creating an appropriate policy framework and engaging in international dialogues in particular with like-minded non-EU countries for coordinated approaches to virtual worlds; stresses the importance of raising European citizens’ awareness about responsible usage in these digital domains;

10. Acknowledges that multiple virtual worlds have been developed by different undertakings in the absence of open and common standards, regulations and interoperable platforms; underlines that these virtual worlds are currently being developed by a limited number of undertakings that have the resources and funds necessary to develop them; considers that interoperability and open standards can contribute to the prevention of quasi-monopolies or abuses of dominant position to the detriment of consumers and to European businesses, especially SMEs;

Welcomes the Commission’s commitment to engage with existing multi-stakeholder internet governance institutions to develop common governance standards and rules; and encourages the Commission to support ongoing multi-stakeholder initiatives currently developing standards, including those of consumer associations and other civil society organisations; recommends a comprehensive study on interoperable virtual worlds; highlights the potential represented by the creation of European data spaces for the development of virtual worlds;

11. Stresses the need to ensure that virtual worlds are open, inclusive, and accessible, contributing to the greater participation of people with disabilities in the new digital environment; signals the potential of virtual worlds to increase the participation of people with disabilities in different activities such as virtual tourism; warns of the potential challenges that users with disabilities will face in interacting with virtual worlds, arising from inadequate accessibility features or designs that do not cater to their specific needs; calls on the Commission to monitor the fitness of the European Accessibility Act and Web Accessibility Directive in ensuring accessibility in virtual worlds . stresses also the need to recognise the specific needs and rights of children;

12. Believes that the debate over the need for the identification of users in virtual worlds should be a priority area in the development of virtual worlds and that there should be a profound reflection on the possible configuration of this digital environment, bearing in mind that, in some cases, anonymity may be preferable; points out that anonymity in the digital environment is always possible under a username (alias), and calls on the Commission to assess the potential use of the European Digital Identity (eID) and wallet in virtual worlds;

13. Reiterates the importance of protecting users’ personal data and privacy; points out that the General Data Protection Regulationmight not be sufficient to address all the challenges posed to data protection in interconnected virtual worlds; calls, while ensuring an innovation-friendly environment, for special attention to be paid to the data protection implications of user-generated content, as well as the processing of sensitive data such as biometric and behavioural data, emotional reactions and haptic information;

14. Underlines that participation in the virtual world is voluntary and calls for the Commission to consider installing the right to permanent deletion so that consumers can ask for their data and profile to be erased from any applications, online games and virtual environments;

15. Considers that particular attention should be given to addictive design and dark patterns in these virtual environments; warns of the potential health issues that may arise from interacting with virtual worlds, such as addiction, cyber sickness or disturbances in sleep patterns; emphasises the special vulnerability of minors and young people to these health problems, including potential impacts on their cognitive development, and underscores the need for age-appropriate design and parental control measures to safeguard them; also considers that research on the impact of technologies that imply direct and permanent modifications to the body is needed;

16. Recalls the potential of virtual worlds and immersive education to promote children’s rights online with regards to their education, empowerment, participation and play, and that it can offer unique experiences that can help minors develop their appetite for learning through, for example, learning through play; notes that this engagement can help them develop skills in collaboration, communication, critical thinking, innovation, and confidence; stresses the opportunity to address the EU’s skills gap and train future talent; underlines the necessity of educational programmes to help children and young people adapt to technological changes and to adopt a healthy and balanced approach combining traditional social interaction with the time spent in the virtual environment, also giving parents the necessary tools to supervise and make informed decisions when allowing or involving their children in the virtual environment;

Notes the need for research on the impact of virtual reality and other technologies on cognitive and behavioural development; underlines the possible risks inherent to early exposure and excessive screen time, which might affect their well-being and proper cognitive, physical, psychological, and social development; insists on the implementation of information campaigns on responsible screen use; highlights the need for educators to be trained appropriately to ensure they have the necessary digital skills and literacy; calls on the Commission to encourage initiatives where universities, engineering schools and industry players partner to assess the skills gaps, co-design roadmaps and strengthen public-private cooperation for the benefit of the EU’s youth; underlines the importance of extending the highest level of protection afforded to minors in other offline and online environments to virtual worlds against various risks, including but not limited to abuse, harassment, bullying, and exposure to violent, sexist, racist or pornographic content; stresses the need to recognise the specific needs, vulnerabilities and the rights of children in virtual worlds; underlines the importance of designing and operating online services and products accessed mostly by children that are safe for children by design and default;

17. Notes that virtual worlds will generate high-resolution images, graphics, and video to enable immersive user experiences, further requiring high-performing infrastructure; notes that, in particular, next generation mobile networks, as well as efficient Wi-Fi connections, such as Wi-Fi 6, with low latency and high bandwidth will be key, as will technologies such as edge computing; reminds of the European Court of Auditors report from January 2022 estimating the total cost of deploying 5G in all EU Member States to be between 281 and 391 billion euros by 2025, including the construction of new 5G infrastructure and the modernisation of existing infrastructure;

18. Notes with concern that growing use of virtual worlds could also exclude certain groups of people who lack basic skills or resources to participate in this environment, but also people living in rural and remote areas, such as outermost regions; emphasises that fostering digital literacy and access to quality and affordable internet is a precondition for any EU-level framework on virtual worlds; calls on the Commission to conduct an evidence-based assessment of how to ensure that the infrastructure needed and devices needed to support the development and functioning of virtual worlds, and the transition from Web 3.0 to Web 4.0 are delivered to consumers, including in remote areas and lower-income households; highlights that a true single market for telecoms is key in this regard; warns of the dangers of financial transactions involving cryptocurrencies, particularly fraud and scams, which might be exacerbated in virtual worlds; recalls also that the irreversibility of many cryptocurrency transactions also means new channels for the parallel economy with victims of fraud having little or no recourse of possibility of recovering lost funds; welcomes the European Union Markets in Crypto-Assets (MiCA) regulation, aimed at establishing a legal framework for cryptocurrencies and digital assets;

Sustainability

19. Points out that the production of the devices needed to access virtual worlds requires resources such as rare earths and other mineral raw materials; welcomes in this regard the presentation of the Commission proposal for a regulation establishing a framework for ensuring a secure and sustainable supply of critical raw materials (COM(2023)0160);

20. Notes the potential for virtual worlds and Web 4.0 to make a positive contribution to the fight against climate change and for environmental sustainability, for example by facilitating remote working, thereby reducing commuting and associated carbon emissions; notes that network infrastructures that enable digital solutions and new business models play a crucial role;

21. Considers that the development and deployment of virtual worlds should take into account the impact on the environment; highlights the importance of raising consumers’ awareness about the environmental impact and sustainability of these new technologies, including electronic waste; notes that, according to the International Energy Agency, electricity consumption by large data centres currently accounts for 1-1.5 % of global electricity use points out that data centre electricity consumption may increase in the event of large-scale adoption of virtual world technologies; recalls the need to use, accelerate and incentivise technological advances to reduce the energy consumption and environmental footprint of the activities related to the production, use and development of virtual worlds, such as advanced recycling techniques and renewable energy sources;

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22. Instructs its President to forward this resolution to the Commission, the Council, and to the parliaments and governments of the Member States.

EXPLANATORY STATEMENT

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.

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he has received input from the following entities or persons in the preparation of the report, until the adoption thereof in committee:

Entity and/or person

Telefonica

Metaverse.eu

Deutsche Telekom

DG Connect

Meta

Écija

DigitalEs

ITI (The Information Technology Industry Council)

Lego

Qualcomm

Netflix

NowNaw

Improbable

Político (interview)

Coindesk (interview)

Videogames Europe

Motion Pictures Association

Vodafone

The list above is drawn up under the exclusive responsibility of the rapporteur.

18.7.2023

OPINION OF THE COMMITTEE ON CULTURE AND EDUCATION

for the Committee on the Internal Market and Consumer Protection

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

(2022/2198(INI))

Rapporteur for opinion: Laurence Farreng

SUGGESTIONS

The Committee on Culture and Education calls on the Committee on the Internal Market and Consumer Protection, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1. Believes that virtual worlds or ‘metaverses’ represent a significant step in the development of the internet and have the potential to impact all areas of citizens’ lives, namely in education, culture, arts and design, music, entertainment and social activities and interactions; stresses that, although there is no standardised definition, they can be understood as a real-time simulation of immersive 3D or 2D spaces in which users can interact; takes the view that virtual worlds can generate synergies with Web 3.0;

2. Calls for the European Union to adopt a comprehensive strategy for virtual worlds; believes that this strategy must be sustainable and human-centric, while safeguarding the values of the EU and fundamental rights; stresses that this strategy should aim at harnessing and promoting the innovation and progress of relevant sectors such as video games, including technologies such as virtual reality (VR), extended reality (XR), game engines, haptics, which are key building blocks for digital skills and for the metaverse(s), as well as the cultural, economic and educational benefits that emerge from them; stresses the need to adopt an interdisciplinary approach to the development of European metaverses, which combine technology and content;

3. Calls for the EU, in view of the strategic autonomy considerations raised by virtual worlds, to ensure adequate and efficient investment in this field; welcomes the Virtual and Augmented Reality Industrial Coalition launched by the European Commission as part of the Media Audiovisual Action Plan; notes that the Horizon Europe and Creative Europe programmes both fund augmented- and virtual-reality projects; acknowledges the need to increase the budgets of these programmes, in order to foster a prominent EU strategy for immersive technologies and to address the challenges of inclusivity and accessibility to virtual worlds;

4. Emphasises the importance of developing metaverses for the EU’s cultural and creative ecosystems, as new spaces for creativity and expression, which can be used to promote European cultural and linguistic diversity; insists on ensuring society-wide accessibility of metaverses in order to make them truly democratic spaces, fostering digital literacy and the basic right to quality and affordable internet access, ensuring connectivity and accessibility for all, particularly people living in rural areas, and to facilitate the inclusion of vulnerable groups;

5. Welcomes the impact that virtual worlds can have in terms of safeguarding and promoting European cultural heritage, by making it possible to offer personalised experiences to users, for educational or tourism purposes; recalls the need to protect European strategic cultural assets and their integrity, including European cultural heritage, in virtual worlds;

6. Notes that ‘metaverses’ or virtual worlds can be subject to economic speculation, monopolistic tendencies or market concentration; underlines the need to move towards a decentralised approach to European virtual worlds, comprising both larger and smaller operators at the various levels of the value chain; stresses that SMEs, which make up the vast majority, of Europe’s cultural and creative ecosystems, must therefore also be able to take advantage of immersive technologies, without being held back by barriers to entry that would only benefit large digital companies; calls for increasing access to funding for SMEs and start-ups; stresses that this can contribute to reduced dependency on third countries and strengthen European leadership;

7. States that virtual worlds and augmented and virtual reality technologies can have a significant impact on education and research by transforming how we acquire knowledge; stresses that metaverses can allow for better visualisation of educational content, awareness raising and increased possibilities for collaboration between learners and educators, as well as being a form of promoting distance and lifelong learning; highlights the potential of virtual worlds to empower individuals and bridge the digital divide through education, promoting digital literacy among all society groups and reducing inequalities;

8. Believes that the development of virtual worlds should coincide with raising European citizens’ awareness of their responsible use; calls for the EU to ensure sufficient investments in the field of digital literacy in order to promote the development of critical thinking among users in the digital world;

9. Emphasises the pressing need to foster STEAM education, skills connected to cultural and artistic creation, training and upskilling of workers in the field of virtual worlds, including artificial intelligence (AI), all of which are key for the building of metaverses, in order to create and keep talent within the European Union, avoiding a brain drain towards other markets and facilitating the harmonisation of training and mutual recognition of qualifications across Member States;

10. Underlines the importance of supporting teachers and educators in the process of equipping students with the necessary basic knowledge to safely navigate virtual worlds; calls on the Member States and the EU in this regard to encourage upskilling of teachers to become digitally competent and proficient with technology;

11. Stresses that an EU strategy for virtual worlds must be aligned with an appropriate framework to ensure the protection and promotion of intellectual property, in particular authors’ rights and copyright, and stresses the need to protect artists and their creations, European cultural heritage and landscape in the virtual worlds; notes that most intellectual property systems in the metaverses are based on blockchain technology, and believes that non-fungible tokens can represent a new source of revenue for the EU’s cultural ecosystem;

12. Notes that metaverses and ancillary digital technologies can be characterised by high levels of energy consumption; stresses that an EU strategy for virtual worlds must assess the environmental impact and sustainability of these new technologies, including by raising citizens’ awareness on such impact;

13. Considers that virtual worlds can also create risks, and that these spaces should be regulated to prevent any abuses linked to harmful behaviour, such as any form of harassment, bullying, discrimination and surveillance of people, in a digital environment or due to inappropriate use; emphasises the need to ensure a safe and healthy environment where cybersecurity, privacy, transparency and the rights and needs of users are properly preserved and protected; stresses the importance of protecting children and minors in virtual worlds, through a thorough implementation of the existing European legislation and strategies such as the Digital Services Act and the new European strategy for a better internet for kids (BIK+), to tackle cyberbullying, safeguard physical and mental health, ensure online safety and promote positive use of the metaverses;

14. Invites the Commission to consider the impact of its horizontal digital legislation, such as the AI Act, on culture, including the definition and ownership of cultural and academic works, and to present, if necessary, initiatives in this area to safeguard and promote the European cultural and creative ecosystem;

15. Notes that future developments of virtual worlds should be guided by ethical and human-centric principles, in line with EU legislation such as the General Data Protection Regulation, the Digital Services Act, the Digital Markets Act and the Copyright Directive; calls on the Commission to ensure close and continuous monitoring on the development of virtual worlds, to identify issues and challenges that may arise and that are not addressed by the current legal framework or that may need further harmonisation among Member States;

16. Recognises the importance of multilateral forums in topics of global significance such as this, and encourages the Commission to take a coordinated approach with the Member States as regards contributing to important international standardisation efforts, such as ‘The Metaverse Standards Forum’, as well as other related initiatives within the OECD and other international organisations such as the ITU and ISO;

17. Underlines the value of the recommendations by the European citizens’ panel on virtual worlds and recalls the currently ongoing European Parliament Pilot Project ‘A space for the metaverse’, which will contribute to create an interdisciplinary European network of experts, thinkers and leaders, for an ethical and democratic development of metaverses.

INFORMATION ON ADOPTION IN COMMITTEE ASKED FOR OPINION

Date adopted

18.7.2023

Result of final vote

+:

–:

0:

25

0

3

Members present for the final vote

Asim Ademov, Christine Anderson, Andrea Bocskor, Ilana Cicurel, Laurence Farreng, Tomasz Frankowski, Romeo Franz, Sylvie Guillaume, Hannes Heide, Irena Joveva, Petra Kammerevert, Niyazi Kizilyürek, Predrag Fred Matić, Martina Michels, Niklas Nienass, Peter Pollák, Marcos Ros Sempere, Massimiliano Smeriglio, Michaela Šojdrová, Sabine Verheyen, Theodoros Zagorakis, Milan Zver

Substitutes present for the final vote

Isabella Adinolfi, Ibán García Del Blanco, Rob Rooken, Marc Tarabella

Substitutes under Rule 209(7) present for the final vote

Angel Dzhambazki, Erik Marquardt

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

Key to symbols:

INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE

Date adopted

28.11.2023

Result of final vote

+:

–:

0:

31

2

8

Members present for the final vote

Andrus Ansip, Pablo Arias Echeverría, Laura Ballarín Cereza, Alessandra Basso, Adam Bielan, Biljana Borzan, Vlad-Marius Botoş, Anna Cavazzini, Dita Charanzová, Deirdre Clune, David Cormand, Sandro Gozi, Virginie Joron, Eugen Jurzyca, Włodzimierz Karpiński, Arba Kokalari, Marcel Kolaja, Kateřina Konečná, Andrey Kovatchev, Jean-Lin Lacapelle, Antonius Manders, Beata Mazurek, Leszek Miller, Anne-Sophie Pelletier, Miroslav Radačovský, René Repasi, Christel Schaldemose, Andreas Schwab, Tomislav Sokol, Ivan Štefanec, Róża Thun und Hohenstein, Tom Vandenkendelaere, Kim Van Sparrentak, Marion Walsmann

Substitutes present for the final vote

Francisco Guerreiro, Ivars Ijabs, Kosma Złotowski, Marco Zullo

Substitutes under Rule 209(7) present for the final vote

João Albuquerque, Petar Vitanov, Stefania Zambelli

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

Key to symbols: