European Union: Issued BEREC Position on Artificial Intelligence and Virtual Worlds

On 15 March 2024, the Body of European Regulators for Electronic Communications (BEREC) issued its position on competition dynamics of Artificial Intelligence (AI) and Virtual Worlds (VW) within the electronic communications networks and services (ECN/ECS) sector. The inquiry assessed key issues related to competition dynamics, internet openness, environmental impact, sustainability, and cybersecurity. According to BEREC, AI technologies can significantly enhance innovation, efficiency, and service quality, but they may also intensify competition issues, potentially affecting user choice and innovation. The reliance of AI on substantial computing power, exclusive access to data, significant financial investment and specialised technical expertise creates considerable barriers to entry and competitive advantages, particularly for established players in the technology industry. The dominance of major cloud service providers and the strategic collection and monetisation of data by large technological companies contribute to competitive disparities, enhancing their market position at the expense of new entrants. BEREC advocates for collaborative efforts with European institutions and regulatory entities to enforce these legislations effectively, aiming to safeguard a competitive and equitable digital market landscape.