Meta Refuses to Sign EU's AI Code of Practice, Escalating Regulatory Tensions

Meta's Kaplan Signals Pushback Against EU Regulation for AI

Joel Kaplan, Meta Platforms Inc.'s new head of global affairs, signaled that the social media giant will not sign on to the European Union's AI Code of Practice, putting Meta at odds with European regulators as it continues to invest heavily in artificial intelligence technology. The Code of Practice, which is intended to establish standardized rules across the AI industry in Europe, is "unworkable and infeasible," said Kaplan, speaking virtually at Meta's EU Innovation Day event in Brussels on Tuesday. The Code puts "additional burdens in the way of Western open source AI models, which is the direction that it's currently headed," he said.

Meta's Global Affairs Chief Slams EU AI Code, Calls It A Burden On 'Western Open Source AI Models' Tensions escalate as Mark Zuckerberg's Meta Refuses To Comply With EU's AI Code - Meta Platforms (NASDAQ:META)

Meta Platforms Inc. META decided not to comply with the European Union's AI Code of Practice. Joel Kaplan, the new head of global affairs at Meta, made this announcement, escalating the company's ongoing disputes with European regulators. What Happened: Kaplan voiced his stance at Meta's EU Innovation Day event in Brussels, as per Bloomberg. He criticized the Code of Practice, aimed at unifying AI industry regulations across Europe, 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, Mark Zuckerberg's Meta was forced to postpone the launch of its AI chat assistant in the EU amid regulatory concerns. Kaplan emphasized the U.S. administration's commitment to supporting and advocating for American technology and tech companies. Meta, a staunch supporter of open-source technology in AI, has justified its significant investment in the technology, particularly after the rise of a cheaper open-source AI model from a Chinese rival. 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. This tool is anticipated to replace third-party fact-checkers on social networks. SEE ALSO: Mark Zuckerberg's Meta Says Some AI Systems Are Too Dangerous To Release And May Halt Development If It Sees 'Critical Risk' Why It Matters: This development adds to Meta's growing list of conflicts with European regulators. In November, the European Commission fined Meta $841 million for violating EU antitrust laws. The company was found to have abused its dominant market position by integrating its classified ads service, Facebook Marketplace, with its primary social media network, Facebook. In January, the European Consumer Organisation (BEUC) raised concerns about Meta's "pay-or-consent" data policy, suggesting it might breach consumer protection laws, data privacy regulations, and the Digital Markets Act. Europe is the second-largest market for Meta after the U.S. In its fourth-quarter results, the company posted an ad revenue growth of 22% for Europe on a user geography basis, exceeding that of North America at 18%. Meta's refusal to adhere to the EU's AI Code of Practice could potentially intensify the ongoing regulatory tensions with the EU. ".. we continue to monitor an active regulatory landscape, including legal and regulatory headwinds in the EU and the U.S. that could significantly impact our business and our financial results." said Susan Li, the CFO at Meta said during the earnings release on Jan. 29. Earlier, it was reported that Brussels was reportedly revisiting its scrutiny of major U.S. tech giants as President Donald Trump returned to the White House. A senior EU diplomat, aware of the review, highlighted the influence of tech leaders close to Trump, saying, "It's going to be a whole new ballgame." READ MORE: Nvidia Still A Top Pick As Microsoft, Meta Stick With GPUs Despite DeepSeek Challenge: Analyst Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. METAMeta Platforms Inc$703.500.87%Overview Rating:Speculative50%Technicals Analysis660100Financials Analysis400100WatchlistOverviewMarket News and Data brought to you by Benzinga APIs

Meta top official warns against penalising US companies

The Big Tech giant is also sceptical about the EU's plans to help companies comply with the EU's AI Act. Europe's regulatory action against US tech companies is pushing the continent "to the sidelines", Meta's new global policy chief, Joel Kaplan, said in a live-streamed interview at an event hosted by the company in Brussels on Tuesday. Kaplan argued that while a global AI revolution is unfolding, it's important to drive competitiveness and economic growth to open innovation and transatlantic cooperation, and for Europe to look for stronger collaboration with the US and its companies. "Embracing an open approach to AI will help Europe compete globally, drive innovation, and boost economic growth. If Europe and the US don't work together, the only winner will be China," he said. Kaplan, who joined Facebook in 2011, is the company's current vice president of global public policy. He served eight years in the administration of Republican President George W Bush and worked as a lobbyist. He takes over from Nick Clegg, who announced in early January that he will step down. His comments fit the recent company narrative. In January, CEO Mark Zuckerberg spoke about the US election result, claiming that Meta would work with incoming US President Donald Trump to push back on countries that are trying to rein in social media platforms. Kaplan also said that Meta will not sign up to the European Commission's Code of Practice on General Purpose Artificial Intelligence, as it stands now. In September, the Commission tasked a group of independent experts to draft by April this year such as a Code of Practice, which includes language models such as ChatGPT and Google Gemini. It aims at helping companies comply with the AI Act's rules, including on transparency and copyright-related rules, systemic risk taxonomy, risk assessment, and mitigation measures. "While political and business leaders across Europe are calling for a change in direction, the EU is responding with a Code of Practice that introduces even more rules that go beyond the AI Act in ways that are, frankly, unworkable. [... ] as it stands today, Meta wouldn't sign up to the current draft," Kaplan said. A third draft version of the Code is set to be published mid-February. The Commission can approve the Code through powers delegated under the AI Act. The AI Act will fully enter into force in August of this year, but provisions on banned systems including facial recognition systems started to apply as of last Sunday.