COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS An EU initiative on Web 4.0 and virtual worlds: a head start in the next technological transition
Date: 2023-07-11
Institutions: Directorate-General for Communications Networks, Content and Technology, European Commission
Subjects: EU initiative, Internet, artificial intelligence, digital technology, information technology applications, innovation, new technology, technological change, virtual reality

EN 

  EN 

   EUROPEAN COMMISSION  Strasbourg, 11.7.2023  COM(2023) 442/final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS An EU initiative on Web 4.0 and virtual worlds: a head start in the next technological transition {SWD(2023) 250}  
 
 
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

An EU initiative on Web 4.0 and virtual worlds: a head start in the next technological 
transition 

1.  Introduction 

The recent Communication on the long-term competitiveness of the EU1 identified Web 4.0 
as a ground-breaking technological transition towards a world where everything is seamlessly 
interconnected.  The  European  Council  has  called  for  the  European  Union  to  stay  at  the 
forefront of Web 4.0 development2. Virtual worlds are an important part of this transition to 
Web  4.0.  They  are  already  opening  up  a  wide  range  of  opportunities  in  many  societal, 
industrial and public sectors. The concept of virtual worlds has been around for decades, but 
they  have  now  become  technically  and  economically  feasible  thanks  to  rapid  technological 
advances  and  an  improved  connectivity  infrastructure.  Virtual  worlds  will  be  an  important 
aspect of Europe’s Digital Decade and will impact the way people live, work, create and share 
content,  as  well  as  the  way  businesses  operate,  innovate,  produce  and  interact  with 
customers3,4,5,6. This brings both opportunities and risks that need to be addressed.  

What are we talking about? 

Virtual  worlds are persistent,  immersive  environments,  based on technologies including  3D 
and extended reality (XR), which make it possible to blend physical and digital worlds in real-
time,  for  a  variety  of  purposes  such  as  designing,  making  simulations,  collaborating, 
learning, socialising, carrying out transactions or providing entertainment. 

Web  3.0  is  the  third  generation  of  the  World  Wide  Web.  Its  main  features  are  openness, 
decentralisation,  and  users’  full  empowerment  enabling  them  to  control  and  realise  the 
economic value of their data, manage their online identities and participate in governing the 
web.  Semantic  web  capabilities  allow  linking  data  across  webpages,  applications  and  files. 
Decentralised technologies and digital twins enable peer-to-peer transactions, transparency, 
data democracy and innovation along entire value chains. 

Web 4.0 is the expected fourth generation of the World Wide Web. Using advanced artificial 
and  ambient  intelligence,  the  internet  of  things,  trusted  blockchain  transactions,  virtual 
worlds and XR capabilities, digital and real objects and environments are fully integrated and 

1 COM(2023) 168 final 
2 European Council conclusions, 23 March 2023 
3 Decision (EU) 2022/2481 
4 Council of the European Union, Metaverse – virtual worlds, real challenges, March 2022  
5 European Economic and Social Committee opinion Initiative on virtual worlds, such as the metaverse, April 
2023  
6 Basdevant A, François C, Ronfard R, Mission exploratoire sur les métavers, October 2022  

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communicate  with  each  other,  enabling  truly  intuitive,  immersive  experiences,  seamlessly 
blending the physical and digital worlds.  

This  Communication  sets  out  the  strategy  and  proposed  actions  on  virtual  worlds  and  Web 
4.0. It builds on consultations with people, academia, civil society and businesses. The voices 
of EU citizens participating in the European Citizens’ Panel on Virtual Worlds7, organised as 
a follow-up to the  Conference on the Future of Europe, have been particularly relevant given 
the  direct  impact  of  virtual  worlds  on  the  way  people  will  engage  in  the  new  digital 
environments.  

The  accompanying  staff  working  document  provides  background  information  on  the 
stakeholder  consultations,  overall  market  trends,  opportunities  for  the  various  industrial 
ecosystems,  technological  trends and the current regulatory framework. The report from  the 
Citizens’ Panel forms a separate staff working document accompanying this Communication. 

2.  What is at stake in this next technological development? 

What is at stake for society? 

Virtual worlds bring unprecedented opportunities in many societal areas, such as better health 
services,  more  engaging  education  and  training,  new  forms  of  interaction  and  collaboration 
among people, or immersive cultural experiences. Public services can also engage with people 
for  more  personalised  administrative  services,  provide  remote  assistance  such  as  in  remote 
and  rural  areas, and  improve  territorial  planning  and  community  life.  In  addition,  virtual 
worlds  are  at  the  crossroads  of  technology  and  culture,  with  European  cultural  and  creative 
sectors expected to play a key role as content providers. 

Examples: 

  By simulating emergency situations and surgeries or providing interaction with the human 
body in 3D, students and professionals can be trained for specific medical scenarios, risks 
of surgical complications can be reduced, and the accuracy of diagnoses can be increased8.  
In  education  and  training,  a  more  experiential  learning  process  can  help  learners  grasp 
abstract or complex subjects more easily, accelerating their learning and understanding of 
the world. 

 

  Digital twins can support the preservation or reconstruction of cultural heritage buildings, 

such as for Notre Dame Cathedral in Paris.  

  Virtual  worlds  can  help  optimise  traffic  flows  based  on  real-time  simulations,  thus 

contributing to the reduction of traffic jams and emissions. 

  Virtual  worlds  can  enhance  democratic  participation  by  offering  new  possibilities  for 

people to voice their ideas, opinions and concerns in more engaging ways. 

7 https://citizens.ec.europa.eu/virtual-worlds-panel_en 
8 https://digital-strategy.ec.europa.eu/en/library/extended-reality-opportunities-success-stories-and-challenges-
health-and-education 

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However, drawing from the lessons of the current internet, the development of virtual worlds 
is  also  likely  to  pose  challenges  to  fundamental  rights  and  important  objectives  of  general 
public interest in a democratic society, for example in terms of rights of the child, protection 
of personal data and privacy, disinformation, cybersecurity, cybercrime, (gender-based) cyber 
violence,  discrimination,  exclusion  and  hate  speech9,  as  well  as  consumer  protection  and 
safety.  Virtual  worlds  may  also  raise  questions  of  responsibility,  liability  and  contractual 
rules.  In  the  area  of  employment,  there  is  a  risk  of  attempts  to  circumvent  EU  social 
standards, for instance by imposing lower ones on users of virtual worlds. 

The  development  of  virtual  worlds  raises  the  issue  of  their  environmental  impact,  due  to 
increased consumption of energy by devices, data centres and telecommunication networks. 
However,  digital  twins  and  immersive  worlds  also  offer  immense  knowledge  and 
understanding  of  how  to  optimise  and  redesign  complex  industrial  processes,  achieve  more 
efficient  production  cycles,  decrease  the  waste  of  materials,  or  adjust  production  based  on 
demand. Virtual worlds also enable deeper and finer insights into climate change and help to 
better anticipate natural hazards. 

What are the economic stakes? 

The  use  of  virtual  worlds  and  advanced  interfaces  can  enable  faster,  safer,  and  easier 
interaction  between  humans  and  machines  in  all  EU  industrial  ecosystems.  Industrial 
applications of virtual worlds will enable intelligent, resilient and connected operations, with 
new digital processes and digital models that are more efficient, cheaper and more sustainable 
than  current  industrial  processes.  On  the  other  hand,  workers  will  need  to  adapt  to  new 
technologies. 

Many  industrial  sectors  such  as  the  automotive,  advanced  manufacturing  or  logistics 
industries  already  use  virtual  environments  to  design,  develop,  simulate  and  test  new 
products, services or workflows, accelerate permitting, but also to optimise inventories down 
the production line.  

As  applications  for  virtual  worlds  expand,  there  is  a  wealth  of  opportunities  for  European 
businesses,  to  develop  products,  services  and  high-value  content  catering  to  the  needs  of 
different  users,  and  take  advantage  of  innovative  new  business  models.  Virtual  worlds  in 
video  games  already  provide  spaces  where  millions  of  people  can  create  and  monetise 
content,  and  explore  and  have  meaningful  interactions10.  A  range  of  new  industrial 
applications  is  emerging  focusing on different  areas of production, such as product  designs, 
quality testing, engineering, manufacturing, maintenance and training. 

Overall  market  development  forecasts  are  promising.  For  example,  the  size  of  the  global 
market of virtual worlds is estimated to grow from EUR 27 billion in 2022 to over EUR 800 
billion by 203011. For specific sectors, such as the automotive industry, the forecasts predict a 

9 Europol (2022), Policing in the metaverse: what law enforcement needs to know  
10 European Media Industry Outlook, The European Media Industry Outlook  
11  https://www.bloomberg.com/press-releases/2022-07-13/metaverse-market-size-worth-824-53-billion-globally-
by-2030-at-39-1-cagr-verified-market-research 

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rise from EUR 1.9 billion in 2022 to EUR 16.5 billion by 203012. XR technologies, such as 
virtual reality (VR) and augmented reality (AR) are key building blocks of virtual worlds. The 
development of these technologies will have significant benefits for the job market, with an 
estimated 860 000 new jobs related to XR in Europe by 202513.  

Examples: 

  Human-machine  interaction  on  the  factory  floor  is  often  hazardous  and  requires  safety 
measures  that  cost  money,  time,  and  space.  XR  technologies  provide  new  safe  ways  of 
human-machine  interaction  that  do  not  require  close  physical  proximity.  This  enables 
humans to use their intelligence and dexterity without the risk of physical harm. 

  Digital twins in the manufacturing and automotive industries enable businesses to model, 
prototype,  and  test  large  numbers  of  design  iterations  in  real  time  and  in  an  immersive, 
physics-based environment before committing physical and human resources to a project.  
  Virtual  worlds  can  benefit  agriculture  through  remote  assistance  for  using  and  repairing 

machinery and for a more precise and safer treatment of animals. 

  Virtual worlds can boost the cultural and creative industry, from fashion to video games, 
cultural heritage, music, visual arts and design, by  offering new ways to create, promote 
and distribute European content and engage with audiences. 

3.  Vision and strategy 

The Commission aims for a Web 4.0 and virtual worlds that reflect EU values and principles 
and fundamental rights, where people can be safe, confident and empowered, where people’s 
rights as users, consumers, workers or creators are respected, and where European businesses 
can  develop  world-leading  applications,  scale  up  and  grow.  Furthermore,  the  Commission 
aims for a Web 4.0 that is powered by open and highly distributed technologies and standards 
that enable interoperability between platforms and networks and freedom of choice for users, 
and  where  sustainability,  inclusion  and  accessibility14  are  at  the  core  of  technological 
developments.  The  EU’s  Single  Market,  rich  and  diverse  culture,  creative  content,  strong 
industrial  base,  excellence  in  research,  innovation  and  education,  and  robust  legislative 
framework  should  be  drivers  to  Europe’s  leadership,  competitiveness  and  technological 
sovereignty in this field. 

The EU’s robust legislative framework 

The  EU  has  a  robust,  future-oriented  legislative  framework  that  already  applies  to  several 
aspects of the development of virtual worlds and Web 4.0. 

12 https://www.globenewswire.com/en/news-release/2022/09/27/2523235/0/en/Metaverse-Market-for-
Automotive-worth-16-5-billion-by-2030-Exclusive-Report-by-MarketsandMarkets.html 
13 VR/AR Industrial Coalition - Strategic paper, available at https://data.europa.eu/doi/10.2759/197536 
14 In line with the Strategy for the Rights of Persons with Disabilities 2021-2030, COM(2021) 101 final 

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In  relation  to  the  protection  and  enforcement  of  the  rights  of  individuals  and  companies 
operating  in  virtual  worlds,  the  Digital  Services  Act  (DSA)15  and  the  Digital  Markets  Act 
(DMA)16  introduce  a  comprehensive  system  of  accountability  and  obligations  for  online 
platforms.  The  Data  Governance  Act17  and  Data  Act18  establish  horizontal  rules  for  data-
sharing  and  give  users  control  over  the  data  generated  by  their  connected  devices.  The 
proposed AI Act will tackle risks emerging from artificial intelligence (AI) and will promote 
innovation in trustworthy AI.   

The General Data Protection Regulation19, which is technologically neutral, also fully applies 
to  the  processing  of  personal  data  in  virtual  worlds.  In  addition,  users  of  virtual  worlds  are 
protected by EU consumer law, in particular the General Product Safety Regulation20, as well 
as the Unfair Commercial Practices Directive21, which provides protection against misleading 
marketing practices.  

The  newly  adopted  Markets  in  Crypto-Assets  (MiCA)  Regulation22  covers  crypto-assets  not 
regulated by existing financial services legislation. It aims to increase transparency about the 
risks  of  crypto-assets,  protect  holders  of  such  assets  and  ensure  integrity  of  crypto-asset 
markets.  The  European  Digital  Identity23  will  give  users  full  control  over  their  digital 
identities.  

For the protection of intellectual property rights and industrial property rights, the existing EU 
legal  framework  (such  as  the  Directive  on  Copyright  in  the  Digital  Single  Market24,  the 
Regulation  on the EU Trade Mark25 and the  Directive on the Protection of Trade Secrets26) 
applies generally to Web 4.0 and virtual worlds.  

Access  by  persons  with  disabilities  to  key  digital  services  is  addressed  by  the  European 
Accessibility Act27 and the Web Accessibility Directive28. 

In addition, persons based in the EU who will work in virtual words should be able to rely on 
the  EU’s  labour  standards,  including  the  rules  for  health  and  safety  at  work,  and  social 
security systems. Effective mechanisms to enforce these rights will be key.  

This strategy presents a range of actions to build  the foundation for the long-term transition 
towards Web 4.0 and the development of virtual worlds. The actions are structured around the 

15 Regulation (EU) 2022/2065  
16 Regulation (EU) 2022/1925 
17 Regulation (EU) 2022/868 
18 Proposal for a Regulation COM/2022/68 final 
19 Regulation (EU) 2016/679 
20 Regulation (EU) 2023/988  
21 Directive 2005/29/EC  
22 Regulation (EU) 2023/1114 
23 https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/europe-fit-digital-age/european-digital-
identity_en 
24 Directive (EU) 2019/790   
25 Regulation (EU) 2017/1001  
26 Directive (EU) 2016/943 
27 Directive (EU) 2019/882 
28 Directive (EU) 2016/2102 

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objectives  of  the  Digital  Decade  policy  programme  and  three  of  its  cardinal  points:  skills, 
business,  and  government.  The  fourth  cardinal  point,  infrastructures,  is  addressed  by  the 
Commission’s  connectivity  package29  and  its  broader  efforts  on  computing,  cloud  and  edge 
capacities30 The strategy also addresses the global governance of virtual worlds and Web 4.0, 
as a specific strand of actions. 

3.1. People and skills  

Awareness,  access  to  trustworthy  information  and  digital  skills  are  essential  aspects  for 
fostering  user  acceptance  of  technological  developments  and  for  empowering  people  of  all 
ages,  especially  those  with  a  low  level  of  digital  skills,  to  get  involved  in  and  use  virtual 
worlds and Web 4.0. User acceptance emerged as a crucial aspect from the Citizens’ Panel. 
Awareness-raising,  improving  technological  literacy  and  skills,  and  increasing  access  to 
technology are key for public acceptance and retention31,32. 

The  development  of  virtual  worlds  requires  technological  and  creative  skills33.  There  is  a 
pressing  need  for  specialists  in  core  virtual  world  technologies  such  as  XR.  Companies 
struggle  to  find  ICT  specialists  with  advanced  digital  skills  in  Europe34.  Moreover,  the  ICT 
sector suffers from a severe gender imbalance with only 1 in 5 ICT specialists being women35. 
It  is  crucial  to  have  a  talent  pool  to  build  the  various  layers  of  Web  4.0  to  achieve  the 
aspirations of the EU to pioneer the development of these technologies.  

The action points below are proposed to address the above challenges. 

3.1.1.  Building a talent pool of virtual world specialists 

The European Year of Skills encourages people across the EU to learn new skills in key areas. 
Developing, attracting and retaining talent is one of the Commission’s top priorities36. To this 
effect,  the  EU  will  use  various  funding  programmes  to  invest  in  future  ICT  specialists  in 
technologies  related  to  Web  4.0  and  virtual  worlds,  and  in  content  creators  for  developing 
hyper-realistic  virtual  worlds37.  In  addition,  the  European  Institute  of  Innovation  and 
Technology  (EIT)  and  its  Knowledge  and  Innovation  Communities  (KICs)  will  partner  up 

29 https://ec.europa.eu/commission/presscorner/detail/en/ip_23_985 
30  Internationally,  the  Global  Gateway  strategy  supports  the  transformation  towards  Web  4.0  through 
investments in partner countries in the deployment of digital networks and infrastructures. 
31 VR/AR Industrial Coalition – Strategic paper, Publications Office of the European Union, 2022 
32 Extended reality – Opportunities, success stories and challenges (health, education): final report, Publications 
Office of the European Union, 2023, https://data.europa.eu/doi/10.2759/121671 
33 European Media Industry Outlook, The European Media Industry Outlook  
34 https://ec.europa.eu/eurostat/databrowser/view/ISOC_SKE_ITRCRN2__custom_6527549/ 
35 https://ec.europa.eu/eurostat/databrowser/view/ISOC_SKS_ITSPS/ 
36 New European Innovation Agenda, COM(2022) 332 final; Digital Education Action Plan, COM(2020) 624 
final; proposals for Council Recommendations on the key enabling factors for successful digital education and 
training, COM(2023) 205 final, and on improving the provision of digital skills in education and training, 
COM(2023) 206 final; and Communication on Harnessing talent in Europe’s regions, COM(2023) 32 final.  
37 For example, through the AccessibleEU resource centre, the Commission is contributing to the training of 
professionals including on digital accessibility to support implementation of accessibility requirements in EU 
policy and legislation and to prevent new accessibility barriers including in the Web.4.0. 

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with  leading  education  institutions,  research  organisations  and  businesses  to  boost  the  EU’s 
virtual technological capacity.  

The EU will use the Digital Decade Board and relevant fora and expert groups to encourage 
Member  States  to  take  action.  Furthermore,  the  EU  will  facilitate  multi-stakeholder 
partnerships,  through  initiatives  such  as  the  Pact  for  Skills38,  to  build  support  for  skills 
development for virtual worlds at national and regional levels.  

At international level, the EU will work to make the EU an attractive destination for top-level 
ICT specialists from non-EU countries, to expand the talent pool needed in the EU. The EU 
Blue Card Directive39, in particular, lists ICT managers and professionals as a highly skilled 
occupation  category  covered  by  that  Directive.  This  legal  framework  helps  attract  foreign 
talents. It was revised in 2021, when the EU Talent Pool40 was introduced.  

3.1.2.  Virtual worlds toolbox for the general public 

In response to the recommendations put forward by the Citizens’ Panel on the need to better 
understand  how  to  manage  their  virtual  identities,  their  virtual  creations,  their  virtual  assets 
and  their  data,  a  toolbox  will  provide  specific  guidelines  on  the  various  aspects  of 
participation  and  involvement  in  virtual  worlds  and  remind  people  of  their  rights  under 
applicable EU legislation.  The toolbox will  cover the use of trustworthy  digital  identity  and 
digital wallet solutions for safe and secure authentication, virtual transactions, management of 
digital  data  and  assets,  data  protection  and  privacy,  consumer  protection,  cybersecurity, 
copyright and intellectual property. 

Another  crucial  topic  discussed  during  the  Citizens’  Panel  is  online  disinformation.  The 
toolbox  will  include  tools  for  content  verification  and  for  empowering  people  to  become 
active  creators  of  trustworthy  information.  Synergies  will  also  be  sought  with  current 
initiatives,  such  as  the  European  Digital  Media  Observatory41  and  the  Code  of  Practice  on 
Disinformation. 

The Citizens’ Panel specified a set of guiding principles for desirable and fair virtual worlds. 
These cover eight fundamental aspects of the European Declaration of rights and principles: 
freedom  of  choice,  sustainability,  human-centricity,  health,  education,  safety  and  security, 
transparency,  and  inclusion.  The  Commission  will  promote  these  principles  throughout  this 
initiative. In relation to the guiding principle of health, the Commission will support research 
on the impact of virtual worlds on people’s physical and mental health and well-being in line 
with the comprehensive approach to mental health.42  

3.1.3.  Empowered and protected children in virtual worlds  

38 https://pact-for-skills.ec.europa.eu/index_en 
39 Directive (EU) 2021/1883 
40 https://eures.ec.europa.eu/eu-talent-pool-pilot_en 
41 https://edmo.eu/ 
42 COM(2023) 298 final 

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Children  and  young  people  are  digital  natives,  but  they  need  to  better  understand  specific 
issues at stake in relation to their safety, security and privacy, protection of their personal data 
and other rights, and obligations in immersive environments. They have fundamental rights to 
such protection as is necessary for their well-being in view of their age and maturity, such as 
protection against online child sexual abuse. In line with the EU Strategy on the Rights of the 
Child43,  the  rights  of  any  child  should  be  upheld  in  virtual  worlds  as  in  the  real  world, 
including through measures to ensure child safety and privacy by design. 

The  new  Better  Internet  for  Kids  (BIK+)  strategy  defines  the  EU’s  actions  to  protect  and 
empower children in online and virtual environments. The planned code of conduct for age-
appropriate  design  will  contribute  to  child-friendly  virtual  worlds.  The  BIK  Portal44  will  be 
used to provide educational resources on virtual environments for young people, parents and 
educators as well as awareness-raising activities by the Safer Internet Centres across the EU. 
The  proposed  recast  of  Directive  2011/93/EU  on  combating  the  sexual  abuse  and  sexual 
exploitation of children will address prevention, investigation and prosecution of sexual abuse 
offences committed against children in and through virtual worlds. 

The Commission will:  

  Action  1:  Support  skills  development  for  virtual  world  technologies  (Digital  Europe 
programme),  including  for  women  and  girls,  and  for  creators  of  digital  content  and 
audiovisual professionals (Creative Europe programme) [2024]; and promote the EU as 
an  attractive  destination  for  highly  skilled  specialists  from  non-EU  countries  [Q3 
2023]. 

  Action  2:  Promote  the  guiding  principles  for  virtual  worlds  put  forward  by  the 
Citizens’ Panel and support research on the impact of virtual worlds on people’s health 
and  well-being  through  Horizon  Europe,  including  specific  research  on  the  impact  on 
children’s health and well-being [Q4 2023]. 

  Action 3: Develop a Virtual worlds Toolbox for the general public, as well as resources 
on  virtual  environments  for  young  people  under  the  Better  Internet  for  Kids  strategy 
[Q1 2024]. 

3.2. Business: supporting a European Web 4.0 industrial ecosystem  

Europe  has  a  strong  industrial  potential  in  the  field  of  virtual  worlds  and  Web  4.0.  It  has 
promising regional hubs, located across the EU, with specific areas of specialisation, ranging 
from  3D  modelling,  to  VR  and  AR  content,  gaming,  and  audio  and  optical  technologies. 
However,  the  ecosystem  is  fragmented  and  faces  challenges  related  to  the  uptake  of  new 
technologies and access to finance.  

43 COM(2021) 142 final 
44 http://betterinternetforkids.eu 

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To create a thriving and world-leading European industrial ecosystem for Web 4.0 and virtual 
worlds,  there  is  an  urgent  need  to  boost  and  bundle  technological  capabilities,  accelerate 
uptake of innovative solutions, and foster a supportive business environment.  

3.2.1.  Boosting the EU’s technological capabilities 

The EU is strong in research and innovation in middleware and software, with big players and 
high-end  SMEs  operating  along  the  value  chain,  from  device  manufacturers  to  solution 
providers and content creators. Europe is also a continent of creativity, with the cultural and 
creative sectors representing 1.2 million businesses in the EU45,46. 

The Commission is currently exploring, in consultation with Member States, a new European 
Partnership47  for  key  stakeholders  to  develop  the  technological  building  blocks  for  useful, 
inclusive,  sustainable  and  trustworthy  virtual  worlds  systems  and  applications.  Such  a 
partnership  would  build  on  the  EU’s  major  investments  in:  (i)  all  key  cutting-edge 
technologies  and  applications  at  the  heart  of  virtual  worlds,  such  as  XR,  digital  twins, 
artificial intelligence, blockchain  and cybersecurity; (ii) common European data spaces;  and 
(iii) the Next Generation Internet initiative, which funds digital commons. In addition, virtual 
realities  technologies  are  cited  among  the  potentially  critical,  deep  and  digital  technologies 
which  may  benefit  from  the  Commission’s  recently  proposed  Strategic  Technologies  for 
Europe  Platform  (STEP)48,  intended  to  unblock  up  to  EUR  160  billion  in  additional 
investments across a number of strategic technology fields. 

3.2.2.  Accelerating the uptake of new business models and solutions 

Building networks and connecting virtual world developers with industry users 

The EU is home to several highly dynamic virtual worlds hubs across the EU, which are at the 
core  of  national  and  regional  ecosystems.  Member  States  may  further  support  these 
national/regional  ecosystems  to  attract  private  investment  while  complying  with  State  aid 
rules. Virtual worlds hubs play a key role in facilitating collaboration between virtual world 
developers  and  industrial  users.  They  would  benefit  from  further  support  by  competence 
centres  and  digital  innovation  hubs  offering  access  to  testing,  experimentation  and  training 
opportunities.  

Building  on  its  cluster  policies,  the  Commission  will  promote  collaboration  and  exchanges 
among  virtual  worlds  hubs.  It  will  also  step  up  the  work  with  the  Virtual  and  Augmented 
Reality  (VR/AR)  Industrial Coalition that brings together various industry players along the 
value chain. The Commission will foster matchmaking between virtual world developers and 
industrial users. In addition, the network of European Digital Innovation Hubs, funded under 
the  Digital  Europe  programme,  and  the  Enterprise  Europe  Network  should  act  as  catalysts, 

45  https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Culture_statistics_-_cultural_employment 
46 COM(2020) 784 final 
47 As specified under the EU’s Horizon Europe framework programme. 
48 COM(2023) 335 final 

9 

 
 
                                                           
engaging  a  broad  range  of  stakeholders  to  encourage  the  adoption  of  virtual  world 
technologies.  

Access to finance to support creators and to scale up innovative business models 

Through  programmes  such  as  Creative  Europe,  European  creators  in  cultural  and  creative 
industries will be able to test innovative business models and creation tools in virtual worlds, 
and  develop  new  sustainable  business  models  and  marketplaces.  MediaInvest49  will  enable 
access  to  equity  finance  for  companies  seeking  to  scale  up,  and  support  the  wider  sharing, 
storage  and  monetisation  of  digital  assets  by  media  players  in  Europe.  Cohesion  funds  are 
available  to  support  innovation  and  creative  industries,  including  start-ups  and  scaling  up 
businesses  throughout  the  EU.  The  reinforcement  of  the  European  Innovation  Council 
Accelerator under the STEP proposal will allow equity-only support for non-bankable SMEs 
and small  mid-caps with  investments  needs in  the range of EUR 15 to  50 million  for deep-
tech  sectors  such  as  virtual  realities  where  they  have  demonstrable  strategic  importance. 
InvestEU can be used to support the broader technological transition to Web 4.0, including by 
opening  dedicated  dialogues  with  the  various  InvestEU  implementing  partners,  project 
promoters and financial intermediaries.  

3.2.3.  Fostering a supportive business environment 

Encouraging innovation via regulatory sandboxes for virtual worlds and Web 4.0 

Regulatory sandboxes can be useful schemes for testing novel solutions in a controlled real-
world  environment  for  a  limited  amount  of  time,  while  respecting  regulatory  safeguards, 
under the supervision of a competent authority. Given the novel features emerging in virtual 
worlds  and  Web  4.0,  sandboxes  would  enable  start-ups  in  the  EU  to  experiment  with  new 
technologies, practices, services, applications and business models, while enabling regulators 
and public authorities to gain knowledge on various relevant aspects of virtual worlds, such as 
the tokenisation of virtual assets.50 The Commission will work closely with Member States to 
identify  specific  topics  where  experimentation  should  be  prioritised  and  to  ensure  a 
coordinated approach within the EU.  

Supporting innovative SME and start-ups 

Innovative  start-ups  will  be  drivers  of  the  European  Web  4.0  industrial  ecosystem.  In  the 
Declaration on the EU Startup  Nations Standard  of Excellence (EU SNS), the Commission, 
Member States and other stakeholders have identified a number of best practices for a start-
up-friendly environment. The European Startup Nations Alliance (ESNA)  works closely with 
the  countries  that  have  signed  the  EU  SNS  Declaration  to  support  them  in  sharing  its  best 
practices and in taking action at national level to implement them. Start-ups in virtual worlds 

49 https://digital-strategy.ec.europa.eu/en/news/commission-launches-mediainvest-boost-europes-audiovisual-
industry 
50  Tokens,  such  as  non-fungible  tokens  (NFTs),  are  important  components  of  virtual  transactions.  They  are 
unique  and  non-interchangeable  units  of  data  that  provide  a  public  certificate  of  authenticity  or  proof  of 
ownership.  The  wider  use  of  NFTs  brings  challenges,  for  instance  related  to  taxation  or  to  novel  types  of 
counterfeiting. 

10 

 
 
                                                           
and Web 4.0 will benefit from horizontal measures to improve the EU’s business environment 
for  SMEs  and  to  support  start-ups,  which  will  be  reflected  in  the  upcoming  SME  Relief 
Package.  

Facilitating the rise of innovative cooperative models in industry 

Cutting-edge technologies like blockchain and digital twins are paving the way for enhanced 
collaboration among enterprises, creators, consumers and citizens within decentralised digital 
contexts. New digital forms of organisations, such as decentralised autonomous organisations, 
are  emerging  and  offering  a  different  way  of  cooperating  and  working  together.  The 
Commission is launching a study to analyse and promote the business opportunities that this 
new  form  of  digital  cooperation  offers  and  identify  legal,  administrative  and  economic 
barriers that prevent their uptake. 

Intellectual property 

The unauthorised reproduction and distribution of virtual assets can pose a significant threat 
to both consumers and intellectual property owners, eroding the trust and integrity of virtual 
platforms.  For  intellectual  property  owners,  counterfeiting  in  virtual  worlds  presents  a 
substantial  risk  of  revenue  loss  and  dilution  of  brand  value.  The  Commission  will  create  a 
toolbox  against  counterfeiting  to  give  holders  of  intellectual  property  guidance  and 
recommendations  on  how  to  enforce  their  rights  both  in  offline  and  online  environments, 
including in virtual worlds.  

Interoperability and standardisation 

Large  distribution  platforms  (in  both  the  business-to-business  and  business-to-consumer 
segments) are among the early movers in  virtual  worlds.  These large market  players have a 
heavy  global  presence,  including  in  the  EU.  This  market  dynamic  leads  to  two  major 
concerns.  First,  large  entities  can  contribute  to  a  closed  ecosystem  by  setting  de  facto 
standards.  Second,  they  may  become  future  gatekeepers  of  virtual  worlds  by  exploiting 
network effects, thus creating new market entry barriers for SMEs and start-ups in the EU. 

Standardisation  will  be  key  to  enable  interoperability  between  different  platforms  and 
networks, enabling the seamless use of identities, avatars, data, virtual assets, experiences or 
environments and the associated rights across platforms and networks.  

Open standards are key to ensuring that the future Web 4.0 ecosystem will not be dominated 
by  a  select  few,  setting  de  facto  standards  and  creating  market  entry  barriers.  The 
Commission,  in  cooperation  with  Member  States  and  stakeholders,  will  engage  with  key 
organisations active in the development of standards for open and interoperable virtual worlds 
and Web 4.0. These efforts will feed into the EU Strategy on Standardisation51 and will draw 
on the work of the High-Level Forum on European Standardisation52. 

51 COM(2022) 31 final 
52https://single-market-economy.ec.europa.eu/single-market/european-standards/standardisation-policy/high-
level-forum-european-standardisation_en 

11 

 
 
                                                           
Supporting the open-source community  

The EU has a very strong and active community of open-source innovators that can contribute 
relevant digital commons to deliver on key features of virtual worlds. The Commission will 
further  support  open-source  innovation  for  Web  4.0,  such  as  in  relation  to  the  use  of 
distributed ledger technology and other technologies needed for the authenticity, management 
and security of virtual objects and identities.  

The Commission will:  

  Action 4: Explore, in consultation with Member States, the launch of a new  European 

Partnership to develop an industrial and technological roadmap [Q1 2024].  

  Action 5: Support EU Cultural and Creative Industries to test new business models in 
virtual worlds through Creative Europe [Q1 2024]; foster matchmaking between virtual 
world  developers  and  industrial  users  [Q1  2024];  and  leverage  the  European  Digital 
Innovation Hubs and Enterprise Europe Network to support virtual worlds hubs and 
to promote the uptake of new virtual world solutions [Q4 2023]. 

  Action  6:  Support  the  development  of  standards  for  open  and  interoperable  virtual 
worlds [Q4 2023]; explore the potential of new digital cooperation models [Q4 2023]; 
develop  a  toolbox  to  fight  counterfeiting  including  in  virtual  worlds  [Q4  2023];  and 
promote the use of virtual worlds regulatory sandboxes by Member States [Q2 2024]. 

3.3. Government: supporting societal progress and improving public services  

Governments at national and regional level play a key role in leading the way towards Web 
4.0: firstly, by constantly improving the design and delivery of public services and services of 
general  interest  in  urban  and  rural  environments  through  digitalisation,  and  secondly,  by 
addressing  major  societal  challenges  such  as  health,  climate  change  and  ageing  of  the 
population. Governments should rigorously assess the costs and benefits of the development 
of services based on virtual worlds and Web 4.0, relative to traditional models.  

Digital twins, primarily used in industrial manufacturing, are moving to various sectors linked 
to public services and areas of public interest. The EU is already investing in major initiatives, 
such  as  Destination  Earth  (DestinE)53,  local  digital  twins  for  smart  communities54,  the 
European  Digital  Twin  of  the  Ocean  (European  DTO)55,  the  European  Blockchain  Services 
Infrastructure56 and the digital twin of the European electricity grid57. This investment aims to 
enable public authorities to make informed public-policy decisions.  

53 https://digital-strategy.ec.europa.eu/en/policies/destination-earth 
54 C(2021) 7914 final, topic 2.2.1.2.3 of the Digital Europe work programme for 2021-2022 
55https://research-and-innovation.ec.europa.eu/funding/funding-opportunities/funding-programmes-and-open-
calls/horizon-europe/eu-missions-horizon-europe/restore-our-ocean-and-waters/european-digital-twin-ocean-
european-dto_en 
56 https://digital-strategy.ec.europa.eu/en/policies/european-blockchain-services-infrastructure 
57 COM(2022) 552 final 

12 

 
 
                                                           
Some forerunner cities are moving towards virtual worlds, but in general the uptake across the 
EU  is  slow.  The  work  of  the  Innovation  Friendly  Regulations  Advisory  Group  will  inform 
future actions on delivering public services in virtual worlds58. 

The  EU  will  support  a  flagship  project  of  public  interest,  the  European  CitiVerse.  This 
immersive  environment  will  help  allow  to  optimise  spatial  planning  and  management  with 
due regard for the social, architectural, sustainable and cultural heritage dimension. Relevant 
common  European  data  spaces  will  strengthen  the  flagship  and  pilot  applications  will  be 
launched under the Horizon Europe programme.  

The  Cultural  Heritage  Data  Space  and  the  European  Collaborative  Cloud  for  Cultural 
Heritage  will  enable  collaboration  between  cultural  heritage  professionals  across  the  EU  to 
safeguard  cultural  treasures  through  digitisation  with  potential  applications  for  the 
development of virtual worlds. 

Moreover,  the  Digital  Decade  policy  programme  for  2030  enables  the  launch  of  European 
Digital  Infrastructure  Consortia  (EDIC),  which  may  be  used  by  Member  States  to  speed  up 
and simplify the setup and implementation of multi-country collaboration projects. EDICs, in 
particular in areas such as language technology and blockchain, can directly support the joint 
deployment of virtual solutions.  

In the field of public health, the Commission will support the development of the  European 
Virtual  Human  Twin59,  which  will  digitally  replicate  the  human  body,  by  bringing  together 
cutting-edge  digital  technologies,  access  to  high-performance  computing  and  access  to 
research  and  healthcare  data  facilitated  by  the  European  Health  Data  Space60.  This  Virtual 
Human Twin flagship will serve clinical decision-support systems, personal health forecasting 
tools and personalised medicine approaches. 

The Commission will:  

  Action  7:  Support  public  flagships  for  smart  and  sustainable  cities  and  communities, 
CitiVerse,  and  for  the  development  of  the  European  Virtual  Human  Twin  under  the 
Horizon  Europe  and  Digital  Europe  programmes  [Q4  2023];  and  encourage  European 
Digital  Infrastructure  Consortia  (EDICs)  in  areas  relevant  to  virtual  worlds  and  Web 
4.0 [Q4 2023]. 

3.4. Governance  

3.4.1.  Governance at the EU and global level 

The technological shift ahead will not be business as usual. The sheer scale of technological 
development,  technological  integration  and  market  developments  requires  close  cooperation 
between the Commission and Member States. The Commission will launch an expert group to 

58 https://ec.europa.eu/transparency/expert-groups-register/screen/expert-
groups/consult?lang=en&groupId=3855&fromNews=true 
59As underlined in Europe’s Beating Cancer Plan, COM(2021) 44 final 
60 COM/2022/197 final 

13 

 
 
 
                                                           
bring  Member  States  together  to  share  common  approaches  and  best  practices  on  the 
development of virtual worlds and the wider technological transition to Web 4.0. 

Beyond the EU, this technological  shift  also  involves new forms  of  global  governance. The 
Citizens’ Panel and the stakeholder consultations have strongly emphasised the need to ensure 
that virtual worlds are designed as open and interoperable from the outset to enable true user 
empowerment and diverse participation, including of under-represented groups, which in turn 
can foster innovation, collaboration and creativity.  

To  ensure  that  Web  4.0,  starting  with  virtual  worlds,  is  shaped  as  an  open,  secure  space, 
respectful  of  EU  values  and  rules,  international  engagement  is  needed  on  a  broad  scope  of 
topics, from technological issues (such as standards for interoperability, identity management 
or  connectivity)  to  content  and  practice  (such  as  content  access  and  creation  versus 
disinformation, censorship versus freedom of speech, and surveillance versus privacy).  

The  Commission  will  support  the  creation  of  a  technical  multi-stakeholder  governance 
process to address essential aspects of virtual worlds and Web 4.0 that are beyond the remit of 
existing  internet  governance  institutions.  This  process  will  aim  to  address  both  the  virtual 
world’s interoperability system and the essential components underpinning the functioning of 
virtual  worlds  such  as  rights  management,  transactions  in  virtual  worlds,  and  identity 
management, as well as topics related to the industrial uptake of virtual worlds solutions.  

3.4.2.  Monitoring the development of virtual worlds and Web 4.0 

As virtual worlds will become more mainstream, it is all the more crucial to stay abreast of 
their impact on people, on various types of industry users, on market movements, and on new 
technological  developments.  Continuous  monitoring,  using  exchange  platforms  or 
observatories,  is  essential  for  policy-makers,  businesses  and  researchers  to  make  informed 
decisions:  (i)  to  identify  and  support  new  opportunities  for  growth  and  innovation,  (ii)  to 
better understand and encourage emerging practices and forms of cooperation such as digital 
cooperatives and the role of decentralised autonomous organisations and (iii) to identify and 
respond to challenges emerging from the use of virtual worlds especially in relation to ethics, 
societal  well-being,  fundamental  rights,  important  objectives  of  general  public  interest  in  a 
democratic society and consumer protection. 

Work under this strand will leverage the industrial ecosystems and draw on the expertise of 
the  recently  launched  European  Centre  for  Algorithmic  Transparency61,  the  EU  Blockchain 
Observatory  and  Forum62,  the  Joint  Research  Centre,  the  Europol  Innovation  Lab63,  the 
Industrial Forum, the Structured Dialogue on Transformation Technologies and studies with 
insights  into  new  governance  models.64,65,66  European  social  partners  will  also  be  invited to 
give their views on the impact of virtual worlds on workers and businesses. 

61 https://algorithmic-transparency.ec.europa.eu/index_en 
62 https://www.eublockchainforum.eu/  
63 https://www.europol.europa.eu/operations-services-and-innovation/innovation-lab 
64 Hupont Torres I et al (2023) Next Generation Virtual Worlds: Societal, Technological, Economic and Policy 
Challenges for the EU, JRC.  

14 

 
 
                                                           
The Commission will:  

  Action 8: Bring Member States together to share common approaches and best practices 
on  the  development  of  virtual  worlds  and  the  wider  technological  transition  to  Web  4.0 
through an expert group [Q4 2023].  

  Action  9:  Engage  with  existing  multi-stakeholder  internet  governance  institutions  to 
design open and interoperable virtual worlds [from Q4 2023]; and support the creation of 
a  technical  multi-stakeholder  forum  to  address  certain  aspects  of  virtual  worlds  and 
Web 4.0 beyond the remit of existing internet governance bodies [from Q1 2024].  

  Action 10: Launch a structured approach to monitor the development of virtual worlds 
across all industrial ecosystems together with Member States and stakeholders [from Q1 
2024]. 

4.  Conclusion 

The development of virtual worlds and the longer-term transition towards Web 4.0 will open 
new  avenues  of  growth  for  European  businesses  and  safe,  trustworthy,  inclusive  and  fair 
applications and services for people to work, learn, socialise and fulfil their potential.  

The EU should act now to become a major player in nascent markets related to Web 4.0 and 
virtual  worlds,  upholding  EU  values  and  fundamental  rights  and  ensuring  that  people  are 
protected and empowered. 

The Commission invites the European Parliament and the Council to endorse the strategy and 
work together on its implementation. The Commission calls on the Committee of the Regions 
and the European Economic and Social Committee to promote the vision put forward by the 
Commission  in  its  dialogues  with  local  and  regional  authorities,  economic  and  social 
stakeholders and civil society. 

65 Craglia M et al (2021) Digitranscope: Key findings, JRC. 
66 Millard J (2023) Impact of digital transformation on public governance, JRC. 

15