Metaverse interoperability is essential. How will regulation play a part?

The metaverse is a convergent technology space increasingly leveraging developments in XR, AI, IoT, and blockchain to usher in the next era of the internet. To maximize its potential impact, the metaverse must get interoperability right.

Interoperability is more than an avatar outfit bought in one game being used in another – it is a process of deliberate design and deployment to facilitate frictionless user experiences, functionality and safeguards between platforms. But the discussion is not limited to design teams; global governance efforts have brought interoperability squarely into the crosshairs of regulatory compliance. As the European Commission (EC) takes on interoperability via the Digital Markets Act (DMA), metaverse development is poised to be a test case in innovating under anticipatory governance, with major implications for the future of digital identity, communications and commerce.

What does interoperability look like today, and how might the metaverse advance that? The most noteworthy example of an interoperable network is the open web, which through the adoption of a set of standardized communications protocols and design norms, enables independent actors to beneficially interact and exchange information on a global scale. Yet while there is a degree of interoperability on the open web that enables particular hardware and software elements to be smoothly and universally integrated, the internet as we know it fails to grapple with some of the most promising milestones in metaverse design.

One key opportunity presented by the metaverse is the furthering of digital identity. If a user’s digital identity were securely and interoperably constituted outside of a specific platform, it could significantly bolster the reliability, utility and safety of digital experiences. One such element of this advancement is digital wallet and payment systems. These promote cross-industry access and engagement, reliable credentialing for digital ownership and asset provenance, and support secure and trustworthy transfers of anything from currencies to concert tickets. With the emergence of interoperability in such instances, the metaverse economy may become even more diverse, broad-reaching and trustworthy than the internet of today. This could be accelerated through coordinated development and level-headed regulation that seeks to guide and support responsible, trustworthy innovation while doing justice to the dynamics of fast-paced markets.

While there are myriad benefits to metaverse interoperability, there are also important considerations to deciding when and where concepts like identity and experience should be frictionless. The “walled garden” landscape is seldom accidental, driven instead by economic, technical and social considerations. The most common virtual spaces in the metaverse employ their own rendering engines, file formats and language systems, because they are attempting to create idiosyncratic user experiences within controlled environments that can be optimized by a defined group of stakeholders. A child-friendly platform may not want appearance assets from a combat game rendered in its ecosystem, even if doing so were technically feasible. Users will also benefit from exercising control and curation regarding how comingled metaverse data becomes. While some, for example, might be happy to share personal data such as height and body shape on developer A’s clothes shopping platform, they might prefer to withhold such information from developer B’s gaming environment.

Without a doubt, interoperability in the metaverse is an attractive prospect to users and developers, bringing possibilities for enhanced experiences, lowered development costs, new investment and profit growth. Yet, understanding that wholesale, metaverse-wide, no-holds-barred interoperability is not desirable, any regulation seeking to guide that development must act judiciously.

This conversation has sprung to life with the EC’s enforcement of interoperability requirements for “core platform services” under the DMA. The DMA enforces particular elements of technical interoperability as key enablers for market competition. Turning their eye to messaging services, WhatsApp has served as an early example of the EC’s requirements. WhatsApp is currently creating the means to enable third-party messaging applications to connect themselves to its service, thus putting users in a position to communicate across applications while adhering to WhatsApp’s privacy and security-protecting protocols. The DMA first emphasizes rendering text, image, voice, video and file messaging services between individuals interoperable, and it will include calls and group chats later. The DMA contains several additional interoperability obligations for designated “gatekeepers”, such as the requirement to make the installation and effective use of third-party applications or app stores compatible with the gatekeepers’ operating systems and to provide access to their essential hardware and software features.

Importantly, the DMA does not simply mandate interoperability in today’s landscape; it strives to make its provisions future-proof. To that end, the EC may conduct a “market investigation” for the purpose of including or removing additional core platform services and obligations in its purview. This may set out concrete design requirements not formerly articulated, and provides a framework for evolving guidance and, ideally, the ability to demonstrate compliance through technical review. With a focus on digitally intermediated communication and an evolving conception of essential services, the DMA sets out a framework that could soon turn its gaze to unique aspects of metaverse technologies.

So what comes next? The metaverse is a step up in its complexity, tech convergence, immersive nature, and need for real-time action and interaction as compared to the 2D web. Far from the era of “move fast and break things”, which defined the development of the internet as we know it, the internet of the future is coming into existence under intense regulatory scrutiny. The way regulations like the DMA approach interoperability in design, functionality and use stand to profoundly impact the way the metaverse will integrate and upscale existing digital experiences.

If cross-sectoral stakeholders can collaborate and use governance to advance safe, accessible, socially and economically viable design, the metaverse may yet achieve its transformative potential. If regulation and innovation cannot find space to coexist in this new era, the internet of the future may be one in jeopardy.