The metaverse has become the buzzword of the pandemic, as companies both big and small race to carve out their part of this expanding virtual world. Within the live events industry, fans are flocking to digital avenues — including VR platforms like Microsoft’s Altspace and games like Roblox — for immersive and exclusive experiences with their favorites artists.
However, as with all new tech, data privacy will be a growing concern as the metaverse develops further. Control of user data has been an important topic in the B2B sphere with the proliferation of virtual event platforms, and analysts on the Thematic Research team at data analytics and consulting company GlobalData, who are tracking the metaverse as important business theme over the coming years, have begun to discuss the importance of developers factoring in data privacy from the beginning.
“We define a theme as anything that will keep the chief executive awake at night,” explains David Bicknell, Principal Analyst on the Thematic Research team. “That could be anything from AI to cybersecurity, Covid 19, ESG, regulation, geopolitics, blockchain and, of course, the metaverse.”
Creators and artists developing digital fan experiences — although they may not be the ones building the actual tech behind them — should be aware of the data privacy regulations, and lack thereof, around the metaverse and what they may mean for users. For example, Athena Demos of BRCvr recently explained during her interview with XLIVE that linking BRCvr to Altspace is rather tricky, which can be frustrating for users but is ultimately due to Microsoft’s robust security.
Rupantar Guha, Associate Project Manager on GlobalData’s Thematic Team, notes that data privacy is not yet a huge topic when it comes to the metaverse as it’s still in the early stages of development, but that he and the team “expect that data privacy concerns will increasingly surface as these platforms mature in the coming years.”
Part of the reason for this, according to Guha, is that “those leading the way on the metaverse are also those who have been pulled up on infringements regarding consumer data privacy. In 2018, the Federal Trade Commission issued Facebook a $5 billon fine for consumer data breaches and introduced more stringent privacy restrictions on the social media platform. For these reasons, it follows that data privacy will remain an issue when developing the metaverse.”
For users, venturing into the metaverse will likely also mean that tech companies will have access to more of their personal data. “I think focusing on the business model underpinning the metaverse is crucial to understand what potential issues could arise around the collection and use of data,” says Laura Petrone, Principal Analyst on the Thematic Team.
For example, it’s likely that the metaverse will follow the ad-funded business model of social media platforms, but companies “will no longer be confined to ads on flat screens. They'll have a whole virtual universe to create immersive, 3D experiences,” she notes.
This means that data like body movement would be up for grabs. “Biometric data are already available through VR headsets, but in the metaverse I would imagine the flow of this data to be more pervasive and systematic,” says Petrone. “If this is the reality, then the biggest issue would come from the collection of data for targeting advertising at users since this type of ad-funded business model has become unsustainable and highly scrutinized by regulators.
“The metaverse might see companies competing to ensure the highest level of privacy, and companies like Facebook would need to adapt. One possible result is companies in the metaverse delivering an ad-free experience for those willing to pay, as opposed to an ad-based experience for those who are not.”
When it comes to regulation around the metaverse, Europe is somewhat ahead of the curve with GDPR, but “many countries have yet to implement similar regulations,” says Guha. He notes that companies will likely need to self-regulate, especially in the beginning. They will be responsible for transparently communicating the types of data being collected and allow users to restrict what data is being stored and used by the platform.
Petrone echoes this sentiment: “Users must be able to give consent to the use of personal data based on transparent usage policies by the companies providing the metaverse, and the permission should be freely obtained, meaning that the user can refuse to give permission without adverse consequences in terms of access to the service.”
To make matters more complicated, companies will likely have their own individual guidelines, and it will be important for anyone utilizing these platforms to be aware of their respective privacy policies. “One potential hurdle might arise from the fact that each company — Microsoft, Facebook, [Epic Games’] Fortnite, etc. — will develop their own set of rules governing their metaverses, sometimes even erecting walled gardens, particularly if they each sell their own proprietary hardware to access these spaces,” explains Petrone.
In the end, users themselves will play a big role in determining how data privacy concerns evolve along with the metaverse. “The extent to which metaverse developers consider data privacy a key issue is in part dependent on changes in consumer behaviour,” observes Charlotte Newton, Thematic Analyst on the Thematic Team.
She continues: “There are legitimate concerns that most users will continue to skim read and sign off on terms and conditions without seriously considering the data privacy implications. In this sense, more serious efforts to ensure data privacy would ideally be coupled with a more tech-savvy younger generation consumer base who are more aware of these issues.”