Meta's EU AI Stance and Apple's AppleCare+ Price Hike: A Week in Consumer Tech News

Meta Platforms Inc. (META) has decided not to comply with the European Union's (EU) AI Code of Practice, escalating its ongoing disputes with European regulators. Joel Kaplan, the new head of global affairs at Meta, voiced his stance at the company's EU Innovation Day event in Brussels, criticizing the Code as "unworkable and infeasible." Kaplan believes the Code imposes "additional burdens on Western open-source AI models," aligning with the industry's current trajectory. He also stated that Meta would keep the U.S. administration updated on the regulatory hurdles it encounters overseas. Previously, Meta was forced to postpone the launch of its AI chat assistant in the EU amid regulatory concerns. Kaplan also announced that Meta will soon introduce Community Notes, a feature allowing users to fact-check content on its platforms in the U.S.



Apple has increased the monthly subscription prices for its AppleCare+ service for all iPhone models in the United States. The price hike, which took effect this week, sees a $0.50 increase for both standard and Theft and Loss plans. The two-year upfront payment plans remain unchanged, as do service fees and deductibles. Apple is phasing out one-time purchase options for AppleCare+ in retail stores, pushing customers toward subscription models. Apple Store employees are now instructed to promote subscriptions as a way to "lower upfront costs" and prevent coverage lapses. For those considering AppleCare+ for the latest iPhones, the Theft and Loss plan for the iPhone 16 Pro now costs $13.99 per month, compared to a $269 two-year upfront option available online.



Meta's decision not to comply with the EU AI Code of Practice has several potential implications for its future operations and regulatory relations within the EU. The company may face regulatory tensions, potential fines and penalties, a negative impact on its reputation and public perception, and a potential loss of market share in the EU. Meta's stance on the AI Code of Practice may also influence the broader AI industry and its approach to responsible AI development. Apple's price increase for AppleCare+ subscription services is likely to encourage customers to adopt longer-term coverage plans, potentially increasing the company's revenue. However, some customers may choose to forgo coverage or switch to lower-cost plans, which could lead to a decrease in the number of subscribers. Both Meta's and Apple's strategic decisions are influenced by broader market trends and competitive dynamics, such as AI and machine learning advancements, the regulatory environment, market saturation and competition, evolving consumer preferences, emerging technologies, and economic headwinds.