LegalVideo Games Europe
Call for Contributions - Competition in ‘Virtual Worlds’ and Generative Artificial Intelligence
1 Mar 20246 pages~15 min full read
The EU video game sector remains highly competitive and dynamic, evidenced by over 5,500 active companies in 2021 and the entry of approximately 500 new developers in that year alone.
See it on page 3Regulatory policy for virtual worlds and generative AI should rely on existing frameworks like the Digital Markets Act (DMA) and the AI Act, avoiding new, overly prescriptive legislation that could stifle innovation.
See it on page 5While the industry is trending toward open standards and interoperability, mandatory interoperability requirements are discouraged as they risk impeding the development of diverse business models.
See it on page 3Generative AI is currently in a nascent stage for game production but is expected to drive significant productivity gains by accelerating the creation of 3D assets, dialogue, and sound effects.
See it on page 4Competitive advantages in the virtual worlds market are currently driven by a mix of proprietary technology, intellectual property access, data, and AI-driven advancements.
See it on page 2The evolution of virtual worlds is a long-standing industry trend, tracing back to early networked titles like 1974's Mazewar and progressing through modern platforms such as Roblox, Fortnite, and Animal Crossing.
See it on page 1Video Games Europe submits a focused perspective on competition in virtual worlds and generative artificial intelligence, emphasizing that both technologies are central to the European video‑games sector’s ongoing innovation and consumer value. The contribution argues that regulatory interventions should be proportionate, evidence‑based, and designed to preserve the sector’s dynamism, warning that premature or overly prescriptive rules could impede the development of diverse business models and emerging services.
The analysis traces the evolution of virtual worlds from early networked games such as Mazewar (1974) through the rise of MMORPGs in the late 1990s and the recent popularity of platforms like Roblox, Fortnite and Animal Crossing, highlighting the sector’s historic reliance on immersive, persistent environments. Competition is described as vibrant, driven by talent, proprietary technologies, intellectual‑property access, data, AI advances, connectivity and net‑neutrality. Over 5,500 companies operated in the EU in 2021, with roughly 500 new developers entering the market that year, illustrating a high level of market entry and diversification. The response notes a shift toward open standards and interoperability, urging support for multilateral standard‑setting bodies while cautioning against mandatory interoperability mandates that could stifle innovation.
Regarding generative AI, the text observes that the technology is still nascent in game production but promises substantial productivity gains by enabling rapid creation of assets such as 3D models, dialogue and sound effects. It identifies key competitive factors—algorithms, data, training infrastructure, bias mitigation, skilled labour and regulatory guardrails—and stresses that existing frameworks for text‑and‑data mining and the forthcoming AI Act should remain the basis for policy, avoiding additional legislative changes without thorough impact assessment. Overall, the contribution underscores that the EU’s existing antitrust tools, including the DMA, are sufficient to address competition concerns in these fast‑moving domains, provided they are applied with continued stakeholder engagement.
