The metaverse may change the business world in the near future. Whether it will succeed or not depends not least on the legal framework and the legal obstacles that have to be overcome on the way to the goal. Companies face the challenge of applying existing laws and regulations to this new environment.
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The Fraunhofer Institute for Industrial Engineering and Organization (IAO) presents this Study “Regulation of the Metaverse” Legal hurdles and challenges that companies must overcome when integrating the metaverse into the business world. The study shows that safe application of existing laws and clarification of jurisdictional issues is a central success factor.
The Fraunhofer IAO study aims to provide companies with a solid foundation for overcoming these legal challenges of the metaverse. Its purpose is to offer recommendations to overcome legal uncertainties and encourage companies to actively utilize the potential of the metaverse. Günter Wenzel, Head of the Extended Environment Department at Fraunhofer IAO, emphasizes For Science Information Service (IDW): “The metaverse is an exciting area that offers companies many opportunities. It is important to utilize existing legal options to offer new products and services.”
Support to companies through concrete assistance
The study recommends the creation of a “regulatory sandbox” to enable companies to test metaverse applications in a secure environment and develop new solutions. According to the authors, collaboration between companies working or wishing to work in the metaverse is key to developing effective strategies.
The study provides concrete recommendations for action on key themes to effectively harness the opportunities of the metaverse. These points cover the following areas:
- Create legal certainty: Politicians should adapt existing laws to the circumstances of the metaverse. This includes the redesign of formal requirements in contract law, the development of quality criteria for virtual goods, and solutions to deal with anonymity.
- Awareness and Training, IT Security: Politics, educational institutions and research should launch information campaigns on IT security to increase awareness about cyber crime and provide training to deal with cyber attacks.
- Involve experts: For appropriate regulatory solutions without over-regulation, expert knowledge from industry associations and scientific institutions should be incorporated into legislation.
- Clarifying legal questions: The study emphasizes that a number of open legal questions still need to be clarified regarding the classification of economically relevant functions and the sale of virtual goods in the metaverse.
The study authors’ appeal is aimed at companies. They must actively participate in developing solutions together and shaping the metaverse to successfully shape the digital future. The IAO sees the conditions for a clear regulatory framework as a decisive factor for the success of the metaverse.
In this context, Fraunhofer IAO is currently launching an innovation network with various actors of the digital value chain to gain initial experience with extended reality XR and the metaverse in a protected environment on behalf of other companies. The Institute offers a modular system of hardware and software solutions to take companies to the next assessment level of the Internet. Companies interested in implementing the “regulatory sandbox” can contact the Fraunhofer IAO directly.
The purpose of the “regulatory sandbox” is to enable companies to test and develop new products, services or digital business models in an environment monitored by regulatory authorities.
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