The Looniverse is the world of cartoons.
It was named as the reality of Bugs Bunny in the DC mini series titled "Superman/Bugs Bunny."
It is meant to be the home of Looney Tunes characters. But we know from Who Framed Roger Rabbit that Warner Bros. and Disney characters, as well as all classic cartoons exist in the same reality. Disney shows like House of Mouse have tied together all their characters. Cartoon Network has provided enough crossovers to pull themselves in, and then shows like Drawn Together and Harvey Birdman also continue this crossover trend.
The basic assumption can be made that all cartoon characters live in the Looniverse.
I would argue that only cartoons where the laws of nature are different from a "live action" universe are assumed to take place in the Looniverse, unless a crossover specifically brings it in. For example, the many cartoons set in the Star Wars Universe, following the laws of physics in that franchise, would NOT take place in the Looniverse; they take place in the Star Wars Expanded Universe.
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