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AI Regulation: Meta’s Bold Refusal Challenges EU’s Landmark AI Act

- Press Release - July 18, 2025
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AI Regulation: Meta’s Bold Refusal Challenges EU’s Landmark AI Act

In a move that’s sending ripples across the global technology landscape, Meta has publicly declared its refusal to sign the European Union’s code of practice for its groundbreaking AI Act. This decision, coming just weeks before crucial new rules for general-purpose AI models take effect, highlights a growing tension between rapid tech innovation and the desire for comprehensive AI regulation. For anyone following the intersection of technology, policy, and market dynamics – a familiar terrain for the crypto community – this development signals a significant battle shaping the future of artificial intelligence.

Why is Meta AI Pushing Back Against EU Rules?

Meta’s chief global affairs officer, Joel Kaplan, minced no words in explaining the company’s stance. In a LinkedIn post, he stated, “Europe is heading down the wrong path on AI.” He further elaborated that the European Commission’s Code of Practice for general-purpose AI models introduces “legal uncertainties for model developers” and includes “measures which go far beyond the scope of the AI Act.” This suggests Meta perceives the voluntary code as an overreach that could stifle its ambitious Meta AI initiatives.

Understanding the EU AI Act: A Framework for AI Regulation

The EU AI Act itself is designed as a risk-based regulation for artificial intelligence applications. It categorizes AI systems based on their potential to cause harm, imposing different levels of scrutiny. Key aspects of this landmark AI regulation include:

  • Unacceptable Risk: Outright bans on AI uses deemed to pose an unacceptable threat to fundamental rights, such as cognitive behavioral manipulation or social scoring.
  • High-Risk Uses: Strict requirements for AI systems used in sensitive areas like biometrics, facial recognition, education, and employment. Developers of these systems must register them and meet rigorous risk and quality management obligations.
  • Transparency Obligations: Requirements for AI systems to be transparent about their capabilities and limitations.

The Controversial Code of Practice for General-Purpose AI

The specific point of contention for Meta is the EU’s voluntary code of practice, published recently. While intended to guide companies in implementing the EU AI Act, Meta argues it oversteps its bounds. This code, affecting providers of general-purpose AI models with systemic risk (like OpenAI, Anthropic, Google, and Meta), includes provisions such as:

  • Mandatory and regular updates to documentation about AI tools and services.
  • A ban on training AI models on pirated content.
  • Compliance with content owners’ requests to exclude their works from data sets.

Meta’s Kaplan views this as an “over-reach” that will “throttle the development and deployment of frontier AI models in Europe,” potentially harming European companies relying on these technologies.

The Broader Implications for Tech Innovation

Meta is not alone in its concerns. Major tech companies globally, including Alphabet, Microsoft, and Mistral AI, have reportedly lobbied the European Commission to delay the rollout of these rules. Their collective pushback underscores a shared anxiety within the industry about the pace and scope of AI regulation. The Commission, however, has remained firm on its timeline, with rules affecting “general-purpose AI models with systemic risk” going into effect on August 2. Companies with such models on the market before this date will need to comply by August 2, 2027. This standoff highlights the delicate balance between fostering tech innovation and establishing necessary safeguards in a rapidly evolving field.

Meta’s refusal to sign the EU’s AI code of practice marks a pivotal moment in the global discourse on artificial intelligence governance. While the EU aims to establish a robust framework for AI regulation, tech giants like Meta fear that overzealous rules could stifle the very tech innovation they champion. The coming months will reveal how this significant disagreement impacts the development and deployment of general-purpose AI models, and whether a middle ground can be found that protects societal interests without hindering technological progress. This ongoing dialogue will undoubtedly shape the future of Meta AI and the broader AI ecosystem for years to come.

To learn more about the latest AI regulation trends, explore our article on key developments shaping AI models’ future.

This post AI Regulation: Meta’s Bold Refusal Challenges EU’s Landmark AI Act first appeared on BitcoinWorld and is written by Editorial Team



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