With a focus on safety, security and privacy, the Government’s consultation on principles for the Metaverse reflect concerns identified elsewhere
Metaverse-focused study group aims to incorporate democratic values into forthcoming virtual world regulation
On 18 September 2024, the Japanese Ministry of Internal Affairs and Communications (MIC) issued a call for comments on a draft report on the Metaverse. In light of the significant increase in the Metaverse’s market size and its projected number of users, in October 2023, the regulator established a ‘Study Group on the Realisation of a Safe and Secure Metaverse’, which aims to contribute to the discussion of international Metaverses, particularly in terms of regulatory concerns (and how to address them). The MIC’s draft report emphasises the need to realise a better-regulated Metaverse for end users, grounded primarily in “principles based on democratic values”, and underlines the important role of Metaverse-related platform providers in ensuring users can use their products safely and securely. The report also identifies two sets of principles, which will shape forthcoming Japanese regulation in this area:
Principles aiming for the further independent and autonomous development of the Metaverse, while working with society; and
Principles aiming to improve the reliability, safety and security of the Metaverse itself.
MIC details platform requirements for responsible data storage, child safety and anti-hacking measures
With regard to the second pillar, the report makes explicit the necessity for lawmakers and regulators to ensure transparency, explainability and accountability from Metaverse platforms. Some examples of more concrete requirements for these companies are made later in the document, and include:
Being clear about any end user data that is stored, and the scope and purpose of that stored data;
Implementing labelling and age restrictions for content that may be harmful to children and minors; and
Sufficiently protecting users and systems against unauthorised access from external actors (hacking), e.g. through an identity verification system at log in.
While the report is light on substantial material focusing on Metaverse market competition, repeated reference to both the size of the market and the expected number of future users create a link between transparent, competitive behaviour from Metaverse companies to positive experiences for the end user.
While firm legislation relating to the Metaverse has so far been sparse, competition and safety concerns could push governing bodies into action
Given the latest wave of antitrust investigations into big tech’s investment and partnerships in the AI space, authorities may fear that the Metaverse resembles another opportunity for these companies to leverage existing advantages (e.g. in data, devices or financial resources) to extend their existing market power into a rapidly developing and early-stage environment. So far, the EU has considered existing digital frameworks (such as the Digital Markets Act) sufficient for supporting a non-legislative approach to the Metaverse. Preferring more concrete oversight, in January 2022, South Korea’s Ministry of Science and ICT (MSIT) announced a pan-government strategy, which prompted several specific regulatory amendments – including the development of Metaverse ethics principles, and the establishment of a self-regulation system. While Japan currently has no law specifically directed at regulating AI or the Metaverse, this consultation suggests its attitude could be shifting in the direction of a stronger approach to both the safety and competition issues presented by emerging virtual world technologies. Opinions and evidence may be submitted by stakeholders until 8 October 2024, after which time the MIC plans to continue finalising its report, with legislation potentially following in future.
