Meta rejects EU AI code, calls it innovation-stifling overreach

Meta Platforms has declined to sign the European Union’s artificial intelligence code of practice, with global affairs chief Joel Kaplan calling it an overreach that will “stunt” companies. The rejection comes as the EU’s AI compliance framework prepares to take effect next month, highlighting growing tensions between Big Tech and European regulators over AI governance.

What you should know: Meta joins a growing list of companies pushing back against Europe’s new AI rulebook, which aims to improve transparency and safety around AI technology.

• The European Commission, the executive body of the EU, published the final iteration of its code for general purpose AI models last week, leaving it up to companies to decide whether to sign.
• The rules create a framework for complying with the AI Act passed by European lawmakers last year and go into effect next month.
• ASML Holding, a Dutch semiconductor equipment manufacturer, and Airbus, the European aerospace company, were among signatories in a recent letter calling on the EU to delay the code for two years.

Why this matters: The standoff reflects broader concerns that Europe’s regulatory approach could hamper AI innovation and competitiveness in the region.

• Meta’s refusal signals potential compliance challenges as the EU moves forward with its AI governance framework.
• The divide between regulatory caution and industry innovation could impact how AI develops globally, particularly in Europe.

What they’re saying: Kaplan criticized the EU’s approach in a LinkedIn post, arguing it goes beyond the scope of the original AI Act.

• “Europe is heading down the wrong path on AI,” Kaplan wrote Friday. “This code introduces a number of legal uncertainties for model developers, as well as measures which go far beyond the scope of the AI Act.”
• “We share concerns raised by these businesses that this over-reach will throttle the development and deployment of frontier AI models in Europe, and stunt European companies looking to build businesses on top of them,” he added.

The other side: Not all major AI companies are rejecting the code, with OpenAI committing to sign the code of practice last week.

Background: Kaplan replaced former global affairs chief Nick Clegg earlier this year and previously served as vice president of U.S. policy at Facebook and as a staffer in President George W. Bush’s administration.