EU leaked metaverse strategy includes regulatory sandbox and new global governance.

The leaked European Commission paper states that the metaverse requires a new form of global governance to remain open and lawful. The draft document suggests relaxing regulations to foster innovation and addresses the legal barriers surrounding decentralized autonomous organizations (DAOs) and other forms of digital cooperation. The document acknowledges the unprecedented opportunities that virtual worlds bring in various societal areas such as healthcare, education, and culture. It emphasizes the need for international collaboration on topics like technological standards, identity management, censorship, and surveillance to ensure that the next generation of the internet is open, secure, and in line with EU values and regulations. The Commission plans to support the establishment of a technical multi-stakeholder governance process to deal with essential aspects of virtual worlds and Web4, which are beyond the scope of existing internet governance institutions like ICANN. Additionally, the Commission aims to explore the potential of new digital cooperation models, conduct a study on the barriers preventing their adoption, and promote regulatory sandboxes for short-term projects. The document also highlights concerns about dominant companies impeding competition and the proliferation of counterfeit goods. Commission President Ursula von der Leyen had promised the document in September of the previous year, with an emphasis on preserving EU values and fundamental rights in the metaverse. At the time of this translation, a commission spokesperson had not responded to a request for comment.

Read more: EU Metaverse Strategy Set to Examine Privacy, Competition and Rights

Edited by Sandali Handagama.