PLATFORM POWER, XR, AND THE METAVERSE: NEW CHALLENGES OR OLD STRUCTURES?

Abstract

While social media platforms continue to dominate the ways in which people connect using computational devices and digital media, a transition towards more immersive platforms and experiences is underway. Extended reality (XR) is the umbrella term for media that enable experiences in augmented, mixed, and virtual reality. Through XR technologies, new digital spaces are being developed that combine features of existing digital platforms with elements of the immersiveness of gaming, sometimes referred to informally as ‘the metaverse’. Notably, many of the corporations behind the dominant social media platforms are active in the XR economy. Meta has garnered much attention in this regard, but Google, Apple, Microsoft, Amazon and Sony have all either entered the market or have been reported as having XR/metaverse ambitions. Through a multiple-case study of three companies—Meta, Epic Games/Unity Engine and ROBLOX—this paper maps out key dimensions of the emerging metaverse economy and shows how the platform characteristics of XR providers, similar to the current social media economy, can enable the concentration of social and economic power around a few actors. We propose that in the transition to a more immersive digital era, to enable a competitive, vibrant and fair XR economy, policymaking and governance must proactively address the issue of concentrated platform power. The paper concludes with a discussion of potential policy and regulatory pathways for taking up this challenge.