Meta Refuses to Sign EU's AI Code, Citing Overreach

Meta has declined to sign the EU's code of practice for AI, calling it overreach. The code is a voluntary framework to help companies follow the AI Act, which includes copyright protections and transparency requirements. Meta argues that the code introduces legal uncertainties and goes beyond the scope of the act. The regulation, which carries fines of up to 7% of annual sales, is set to go into force next month.

Meta Platforms Inc. has declined to sign the European Union's voluntary code of practice for artificial intelligence, citing concerns over legal uncertainties and overreach. The code, published earlier this month, is designed to help companies comply with the EU's AI Act, which includes transparency requirements and copyright protections for AI models [1].

Meta's head of global affairs, Joel Kaplan, stated on LinkedIn that "Europe is heading down the wrong path on AI" and that the code introduces legal uncertainties for model developers [1]. He argues that the code goes beyond the scope of the AI Act, which classifies AI applications into risk categories—unacceptable, high, limited, and minimal—and imposes obligations accordingly [2].

The EU's AI Act, approved in 2024, carries fines of up to 7% of a company's global annual revenue for violations. The voluntary code of practice aims to provide legal clarity and reduce compliance burdens for signatories [2]. However, Meta believes that the code introduces additional complexities and legal uncertainties, potentially making it more challenging for companies to operate within the EU's regulatory framework.

The AI Act will go into force on a staggered timetable, with rules impacting general-purpose AI models such as ChatGPT coming into effect next month [3]. Meta's decision not to sign the code of practice is the latest flashpoint between US tech companies and European regulators seeking to rein in their market power [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-18/meta-says-it-won-t-sign-eu-s-ai-code-calling-it-overreach
[2] https://www.ainvest.com/news/eu-sets-key-benchmarks-regulating-ai-development-code-practice-2507/
[3] https://www.reuters.com/sustainability/boards-policy-regulation/ai-models-with-systemic-risks-given-pointers-how-comply-with-eu-ai-rules-2025-07-18/