<p>This paper offers a philosophical and ethical critique of artificial intelligence (AI) and platform capitalism in virtual reality (VR) environments, examining how digital colonialism and algorithmic sovereignty reshape identity, agency, and justice in immersive lifeworlds. Drawing on political theory, decolonial scholarship, and digital phenomenology, the analysis traces three interrelated transformations. First, it examines how data colonialism operates within platforms such as Meta’s Horizon Worlds, where behavioral data extraction and algorithmic systems structure perception and interaction, producing forms of cognitive colonization embedded in immersive experience. Second, it analyzes the rise of algorithmic sovereignty—exemplified by environments such as Decentraland—through which governance is exercised via privatized, often opaque infrastructures regulating participation, visibility, and cultural production. Third, it highlights resistance movements, including Indigenous-led initiatives such as Te Awa Tupua, which propose alternative models of immersive governance grounded in relationality, collective stewardship, and epistemic plurality.</p><p>Across these transformations, the paper develops the concept of immersive justice as a normative framework for evaluating and redesigning immersive environments. It examines the ethical implications of immersive technologies, including algorithmic asymmetries, ecological costs, and the transformation of interaction through avatars and synthetic agents. Engaging cyberfeminist and virtue ethics perspectives, the analysis shows how immersive systems can reinforce extractive logics or support more inclusive, participatory, and sustainable forms of collective life. The paper argues that immersive environments must be governed as shared infrastructures of experience, embedding accountability, plurality, and responsibility within their design and operation.</p>