Crypto Gloom

European Parliament Highlights Metaverse’s Impact on Privacy and Democracy

In collaboration with the IEEE Standards Association, the European Commission has published a comprehensive report assessing the potential impact of the metaverse on human rights, democracy, and the rule of law. The report delves into the virtual opportunities and risks posed by immersive technologies that constitute this new frontier, and highlights the importance of taking regulatory action to protect and preserve the fundamental virtual freedoms of global citizens.

The metaverse is an immersive, persistent, and interoperable digital environment that offers significant opportunities for advancement in a number of areas, including entertainment, education, healthcare, and commerce. However, some experts are concerned that the metaverse could pose significant privacy risks. In fact, this report analyzes the potential benefits and drawbacks of the coming technological revolution and warns that user data could be at risk in immersive spaces.

One of the biggest concerns centers around the massive amount of data that could be collected. The metaverse relies on technologies like augmented reality and virtual reality, which collect huge caches of personal information through wearables and other sensors.

These technologies have the potential to collect not only the usual kinds of data, such as demographic information, but also biometric data, such as eye movements, facial expressions, and body gestures. AR and VR can use this data to create seamless immersive experiences, but in terms of “what can go wrong,” the potential for privacy invasion and identity theft is much greater than most other digital experiences.

The report recommends a robust privacy framework to protect users, advocating both privacy-preserving technologies and transparent data practices. It calls for clear user consent and greater user control among companies operating in the Metaverse.

Web3: A Decentralized Future?

According to the report, the next version of the Internet, Web3, will bring unique consequences for the metaverse and the people who use it. Unlike the current Internet, which is dominated by a few large platforms, Web3 will be built on decentralized blockchain technology, which could give users greater control over their data and digital assets.

In contrast to the Web 2.0 platforms controlled by centralized technology companies, Web 3.0 envisions a more democratic digital ecosystem where users have both ownership and governance of the platforms they inhabit. But with this decentralization comes a big question about governance: who will ensure that our platforms operate effectively, efficiently, and fairly?

Regulating decentralized platforms is not a simple task. While these platforms seem naturally suited to operating in an unregulated space, it is important to understand that, like any other unregulated space, they can easily become lawless. The European Commission advises that existing legal frameworks should be adapted to new decentralized conditions.

Dangers to democracy and freedom of expression

The European Parliament’s Metaverse report looks at how the metaverse could fundamentally change the way people communicate and interact socially, but also poses potential threats to freedom of speech and democracy. The distraction-free environment of the metaverse can be used effectively, allowing users to hold virtual town halls and virtual elections. But the same environment can also be used as a blank canvas to control what is seen and heard.

The critical problem of content moderation often finds platforms turning to algorithms for help. However, the report notes that these algorithms “may lack the nuance to distinguish between legitimate speech and harmful content.” Furthermore, users in the metaverse may be trapped in a “filter bubble,” where they are only shown content that aligns with their preexisting beliefs and opinions. This is not a virtual phenomenon, but a feature of the current information ecosystem.

The European Parliament emphasizes the importance of content moderation in protecting the right to expression as well as the principles of democracy and good governance. Any content moderation policy must not only achieve these goals, but also be transparent and allow for user appeal. As our immersion in the digital environment increases, this is an essential and urgent issue, especially given how persuasive and undetectable false narratives can be.

Protection of children’s rights

The metaverse is a particularly vulnerable space for children, with recent reports expressing strong concerns that current systems are unable to provide meaningful age screening and that children are being exposed to potentially dangerous spaces.

The European Council calls for stricter rules on age-appropriate design and robust age verification systems. We want the platforms our children use to converge toward a meaningful level of safety. We also want to converge toward an acceptable level of understanding of the augmented and mixed reality our children will experience.

Governance and the Rule of Law

Ensuring proper governance of the metaverse is no easy task. It is a virtual world operating beyond the boundaries of the real world, and it raises fundamental questions about jurisdiction, enforcement, and accountability. These are age-old problems of virtuality that our latest online tools have failed to address. In fact, existing legal frameworks are likely ill-suited to deal with a decentralized and borderless virtual environment, especially when it comes to dealing with real-world crimes that occur in these virtual worlds.

The report highlights the need for global teamwork in creating a new legal framework to govern the metaverse. The virtual world is too vast for any one country to regulate on its own. As the metaverse continues to expand, it will require not only investment from governments and technology companies, but also the collaborative participation of people around the world. The European Parliament has been very active in this effort in recent months, and the latest report is an excellent overview of the current situation and recommendations for moving forward.

Final Thoughts

The European Parliament argues that timely governance and regulation of Metaverse and Web3 technologies are urgently needed. These still nascent technologies offer great promise for innovation and social engagement, but they also have the potential to create new and serious threats to privacy and identity. This means a whole new front for content moderation and governance that makes current discussions seem tacky by comparison.

Editor’s note: Written with the assistance of AI, edited and fact-checked by Jason Newey.

  • Jason Newey

    Jason Newey is a seasoned journalist specializing in NFTs, the metaverse, and Web3 technologies. He has a background in digital media and blockchain technology, and is adept at translating complex concepts into engaging and informative articles.

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