Meta Refuses to Sign EU’s Voluntary AI Code, Citing Legal Uncertainties and Regulatory Concerns

Meta has decided not to sign the European Union's voluntary AI code of practice, voicing concerns that it could stifle innovation in the region. Jess Weatherbed, a news writer focusing on creative industries, computing, and internet culture, reported this development. Joel Kaplan, Meta’s global affairs chief, issued a statement on LinkedIn explaining the company’s stance: “We have carefully reviewed the European Commission’s Code of Practice for general-purpose AI (GPAI) models, and Meta won’t be signing it. This Code introduces a number of legal uncertainties for model developers and includes measures that go beyond the scope of the AI Act.” The EU published the code on July 10th, outlining voluntary guidelines intended to help companies comply with the upcoming AI Act rules, which are set to take effect on August 2nd. These guidelines aim to ensure transparency about training data and security risks, as well as adherence to EU and national copyright laws. Companies that sign the agreement are expected to benefit from reduced administrative burdens and increased legal certainty, potentially avoiding more intensive regulatory scrutiny. Despite these benefits, Meta is hesitant. The company argues that the EU’s AI Act could hinder the development and deployment of advanced AI models in Europe, putting compliant firms at a competitive disadvantage. Kaplan’s concerns echo those expressed in a letter signed by over 45 companies and organizations, including Airbus, Mercedes-Benz, Philips, and ASML, which called for a two-year delay in implementing the regulation to address compliance uncertainties. In contrast, the United States is taking a different approach to AI regulation. The Trump administration has been working to remove regulatory hurdles, aligning with Meta’s stance on the issue. This shift in the US regulatory environment underscores the growing tension between European and American approaches to managing AI technology. OpenAI, a prominent competitor, announced its intention to sign the EU’s code of practice on July 11th, highlighting the divide among tech companies on this matter. Meta’s refusal to sign is not entirely unexpected, given the company’s history of facing substantial fines under EU regulations and its alignment with the more permissive attitude in the US. This decision by Meta highlights the ongoing debate over AI governance and the potential implications of stringent regulations on technological advancement and global competitiveness. As the EU continues to tighten its regulatory framework, it remains to be seen how this will affect the AI industry and whether other major players will follow Meta’s lead.