  The measurements of the QED reaction $ \EEGG $ performed with the L3 detector
are used to search for new physics phenomena beyond the Standard Model. No
evidence for these phenomena is found and new limits on their parameters are
set. First the reaction is used to constrain a model of an excited electron and
second to study contact interactions. The total and differential cross sections
for the process $ \EEGG $, are measured at energies from 91 GeV to 202 GeV
using the data collected with the L3 detector from 1991 to 1999. The L3 data
set lower limits on the mass of an excited electron $ \MESTAR > 402 $ GeV, on
the QED cutoff parameters $ \LAMP > 415 $ GeV, $ \LAMM > 258 $ GeV and on the
contact interaction energy scale $ \Lambda > 1687 $ GeV. The last parameter
limits the size of the interaction area to $ R < 1.17\times 10^{-17} $ cm. Some
limits on the string and quantum gravity scales are also discussed.
