European businesses, investors, and talent are trying to get on the hype train. Political figures are making statements.
The French president wants to build a European metaverse to challenge the US and China. Margrethe Vestager is considering new antitrust regulation. Their ambitions are far from being realized.
There is no European big tech player that is relevant in the metaverse future according to Rolf Illenberger, the founder of the virtual reality platform. The players from the US and Asian countries are defining it. The two regions where this technology is going to be developed are North America and Europe.
If you subscribe to our newsletter, you'll get a weekly recap of our favorite artificial intelligence stories.
In the US, the tech giants of Meta, Microsoft, and Apple are set for leading roles.
Asia is their biggest global challenger. The owner of Pico and TikTok, Bytedance, is the strongest contender, but there are other competitors.
European startups lag behind their US and Asian counterparts.
Europe is mostly limited to niche operators and startup companies. Ready Player Me, a cross-game platform that recently secured $56 million in a funding round, is one of the many examples of these.
Jake Stott, CEO of Web3 and metaverse ad agency Hype, is optimistic that Europe can produce future payment providers in the space. They face a lot of challenges.
European startups have been behind their US and Asian counterparts in the past. The US leads in terms of venture capital raised. One of the areas where government support can help is by removing barriers to growth.
He has a plan to plug the funding gap. The first venture capital firm to specialize in early-stage metaverse companies in Europe has been launched by a Finn and his business partner. The 25m fund was announced in March.
Rajalhlme says that they are not missing in talent. The big question is how to keep that talent in Europe.
Financial incentives are often the best motivators for talent. The salaries offered upon graduation don't compare to those in Silicon Valley.
Grants from the EU can provide some support, but applying for them is very time consuming and financing is limited. Early-stage funding and go-to-market expertise is what FOV is known for.
There is an edge network of metaverse professionals from established players. Funding can be provided by these experts.
Europe's investors want to challenge US resources.
He says that as VCs, we should be very collaborative and help at the grassroots level. We have to get more and more people involved in this wave because it is just beginning.
The metaverse only crept into the mainstream after Facebook changed its name.
The metaverse doesn't mean it's now widely- understood. Problems and opportunities are posed by the concept.
The European Commission and Parliament want to regulate the metaverse. They don't know what they're regulating
"As a legislator, we have now to think about how we can regulate something that is not there, or something that is existing already but in a smaller dimensions," said a European Parliament member.
There are many definitions of the metaverse The real-life version of Snow Crash is described as a "3D internet" by the author. Mark thinks that a virtual environment where you can be present with people in digital spaces and an embodied internet that you are inside of would be a good idea.
Matthew Ball gave a description that Rajahalme preferred.
A network of real-time rendered 3D virtual worlds that can be experienced by an unlimited number of users with an individual sense of presence, and with continuity of data, such as identity, history, entitlements, objects, communications, and payments.
There's room for many use cases in these definitions.
The metaverse will allow us to move between digital spaces for work, education, leisure, and any other aspect of our physical world.
There are elements of this vision already present. Virtual worlds are a mainstay of online gaming, and consumers can also experience virtual worlds.
There are many applications that can play to the strengths of Europe. Germany's industrial economy provides promising foundations for B2B services in the metaverse, while the Nordics can take advantage of its stellar gaming sector.
Critics say many "metaverse" vendors are just repackaging existing technologies. Individual applications are notintegrated. It will be difficult to impose Interoperability across platforms.
Illenberger is not sure if the metaverse is going to become decentral. He thinks that Chinese and US tech firms will still be in control of the platforms.
He says that it will be Meta, Apple, and Bytedance. If you are an app developer, your target audience will be small. Developing apps for Meta and Apple is what you will do.
EU lawmakers claim that antitrust regulation and strong data protection are competitive advantages.
Some people disagree.
Some metaverse businesses are concerned about EU regulation.
Rajahalme shared an anecdote about a panel discussion on artificial intelligence developments. The EU representatives said they wanted to be the best regulators of artificial intelligence.
He jokes that Europeans want to be the best at making stop signs.
It’s a nightmare to comply with European data privacy rules.
The drawbacks of heavy-handed regulation have been seen by Illenberger.
There was a problem with the outward-facing cameras used in the headsets. They can easily violate EU requirements for consent if they accidentally film someone in a workplace.
The risks have led to the introduction of dedicated virtual reality rooms. These facilities are not convenient for some businesses.
He says using metaverse technologies in compliance with European data privacy laws is a nightmare. In order for the device to work, you have to film your environment.
It can hamper innovation if the rules are changed too quickly.
The dream of competing with global tech giants is fanciful.
European firms may find more success if they work with the incumbents. The company has built a business on supporting headsets.
There are opportunities in the fragmented market, according to Illenberger. Businesses will seek his services over Silicon Valley stalwarts with little interest in the rules, as he is confident his company can benefit from stringent EU regulations.
This is a competitive advantage for us according to him. Europe is a big roadblock compared to the US and Asia.
Do you agree with the idea of a European metaverse that competes with the tech giants while protecting the rules and culture of the region?
"That's not true."
All Rights Reserved © 2024
