Meta Platforms has confirmed it will not sign the European Union’s new AI code of practice, calling the guidelines an unnecessary overreach that will stifle innovation and hinder growth for AI developers. In a public statement posted on LinkedIn, Meta’s Chief Global Affairs Officer, Joel Kaplan said the voluntary framework introduces legal uncertainties and extends far beyond the scope of the EU’s AI Act, which was enacted last year.
“Europe is heading down the wrong path on AI,” Kaplan stated, underscoring the company’s belief that the guidelines will throttle the progress of frontier AI models and negatively impact businesses aiming to build on such technologies. Meta’s decision comes despite the code being voluntary, with no legal obligation for companies to sign. However, the tech giant’s public opposition signals broader tensions between U.S. technology firms and European regulators over AI governance.
The European Commission published its final version of the AI code of practice earlier this month. It is designed to complement the AI Act by helping companies meet its requirements, with a focus on improving transparency, safety, and compliance with EU copyright law. Key provisions include mandates for AI developers to disclose the datasets used in training models and to honor copyright holders’ requests to exclude their work from AI systems. While signing the code is not compulsory, compliance offers companies certain assurances against future regulatory action.
Meta warns Europe’s AI guidelines risk stifling future AI growth
Meta’s stance aligns with concerns expressed by a coalition of 45 European firms, including ASML Holding and Airbus, which have urged the EU to delay the code’s implementation for two years. These companies argue the rules could disrupt AI development across the continent. In contrast, other major players such as OpenAI and Mistral have already signed the code. Microsoft’s President Brad Smith said his company is likely to sign, noting the importance of working constructively with the EU’s AI Office.
Kaplan, who replaced Nick Clegg as Meta’s top global affairs executive earlier this year, reiterated the company’s broader critique of Europe’s regulatory approach. Meta has previously labeled the AI Act unpredictable and harmful to innovation, suggesting it creates delays and forces product revisions that ultimately disadvantage European consumers. Despite the voluntary nature of the code, European Commission officials have clarified that companies choosing not to sign will face heightened scrutiny. They will be required to demonstrate alternative methods of compliance with the AI Act, potentially exposing them to more intensive oversight.
Violations of the AI Act carry substantial penalties, with fines of up to seven percent of a company’s global turnover for the most serious breaches. The disagreement highlights the ongoing divide between European policymakers focused on safeguarding transparency and ethical standards in AI and U.S. technology firms prioritizing operational flexibility and growth. As enforcement of the AI Act begins next month, the spotlight will remain on how companies adapt their strategies to navigate the evolving regulatory landscape. – By Content Syndication Services.