Meta Rejects EU AI Code of Conduct, Citing Innovation Concerns

Market IntelFriday, Jul 18, 2025 2:01 pm ET
1min read
Aime RobotAime Summary

- Meta rejects EU's AI Code of Conduct, citing excessive regulation risks stifling innovation and creating legal uncertainties.

- Company joins ASML and Airbus in opposing the voluntary code, arguing it hinders European AI development and business models.

- OpenAI commits to the code, which offers legal protections for signatories through safety, transparency, and copyright guidelines.

- Meta's stance reflects broader industry tensions between regulatory oversight and technological progress in AI development.

Meta Platforms has declined to endorse the European Union's Code of Conduct for General-Purpose AI Models, citing concerns over excessive regulation that could stifle innovation. The company's global affairs head, Joel Kaplan, publicly expressed this stance on social media, arguing that the code introduces significant legal uncertainties and measures that go beyond the original intent of the AI Act.

The EU Commission released the final version of the Code of Conduct last week, emphasizing a voluntary signing principle that allows companies to decide whether to participate. The code, set to take effect next month, is an extension of the AI Act passed by the EU last year. Its aim is to enhance the transparency and safety of general AI models, providing a clearer compliance framework for developers and users.

Meta is not the only tech giant to voice opposition to the new regulations. Previously, Dutch semiconductor equipment giant ASML and European aerospace giant Airbus, among others, had jointly written to the EU, urging a two-year delay in the implementation of the code. Kaplan echoed these concerns, stating that such over-regulation would restrict the development and deployment of cutting-edge AI models in Europe and stifle European companies aiming to build business models based on AI.

In contrast, OpenAI has already committed to signing the code. The Code of Conduct includes guidelines on safety, transparency, and copyright, designed to help signatories comply with the EU's broad AI legislation. Companies that agree to the code could gain additional legal protections if accused of violating it.

Kaplan's appointment as Meta's global affairs head this year marks a significant shift in the company's regulatory strategy. Previously, he served as the vice president of U.S. policy at Facebook and held a position in the administration of former U.S. President George W. Bush. His background suggests a more assertive approach to regulatory challenges, which is evident in Meta's stance on the EU's AI Code of Conduct.

Meta's decision to reject the Code of Conduct highlights a broader debate within the tech industry about the balance between regulation and innovation. While the EU aims to create a safer and more transparent AI landscape, companies like

argue that excessive regulation could hinder technological progress. This tension is likely to continue as AI technologies evolve and regulatory frameworks adapt to new challenges.

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