Meta Refuses to Sign EU's AI Code of Practice, Citing Overreach and Innovation Concerns

Reviewed byNidhi Govil

13 Sources

Meta declines to sign the European Union's voluntary AI code of practice, calling it an overreach that could stifle innovation and economic growth in Europe. The decision highlights growing tensions between tech giants and EU regulators over AI governance.

Meta's Stance on EU's AI Code of Practice

Meta, the parent company of Facebook, has taken a firm stance against the European Union's newly introduced AI code of practice. Joel Kaplan, Meta's Chief Global Affairs Officer, announced the company's decision not to sign the voluntary framework, describing it as an "overreach" that could potentially hinder innovation and economic growth in Europe 1.

Source: Digit

Source: Digit

Kaplan stated, "Europe is heading down the wrong path on AI," and expressed concerns about the legal uncertainties the code introduces for model developers 4. He argued that the measures proposed in the code go beyond the scope of the AI Act, potentially throttling the development and deployment of frontier AI models in Europe 2.

The EU's AI Code of Practice

The European Union's code of practice is a voluntary framework designed to help companies implement processes and systems to comply with the bloc's AI Act. Key aspects of the code include:

  1. Regular updates and documentation of AI tools and services
  2. Prohibition of training AI on pirated content
  3. Compliance with content owners' requests regarding data set usage
  4. Improved transparency and safety measures 1

The code is part of the broader AI Act, which came into force in June 2024 and applies to major tech companies like Google, Meta, OpenAI, and Anthropic 2.

Industry Divide on AI Regulation

Meta's decision highlights a growing divide within the tech industry regarding AI regulation. While Meta has chosen not to sign the code, other major players have taken different stances:

  1. Microsoft: Brad Smith, Microsoft's President, indicated that the company is likely to sign the code after reviewing the documents 2.
  2. OpenAI: The company has already agreed to sign the EU's Code of Practice for General Purpose AI, stating its commitment to providing secure AI models for Europeans 5.
  3. Mistral AI: Along with OpenAI, Mistral AI has signed the code 2.
Source: Reuters

Source: Reuters

Implications and Potential Consequences

While signing the code is voluntary, it offers certain advantages to companies:

  1. Legal Protection: Signatories may receive more legal protection against future accusations of breaching the AI Act 3.
  2. Regulatory Scrutiny: Companies that don't sign may face increased regulatory scrutiny and need to demonstrate alternative means of compliance 3.

The AI Act includes significant penalties for violations, with fines of up to 7% of a company's annual sales for general violations, and 3% for those developing advanced AI models 3.

Source: Economic Times

Source: Economic Times

Broader Context of AI Regulation

Meta's decision comes amidst ongoing debates about AI regulation globally. The company has previously criticized the AI Act, calling it "unpredictable" and claiming it goes too far in regulating the industry 3. This stance aligns with some other tech companies and political figures who have expressed concerns about the potential impact of strict regulations on innovation and economic growth in the AI sector.

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