Meta says it won't sign the EU's AI code of practice

Meta said on Friday that it won't sign the European Union's new AI code of practice. The guidelines provide a framework for the EU's AI Act, which regulates companies operating in the European Union.

The EU's code of practice is voluntary, so Meta was under no legal obligation to sign it. Yet Meta's Chief Global Affairs Officer, Joel Kaplan, made a point to publicly knock the guidelines on Friday. He described the code as "over-reach."

"Europe is heading down the wrong path on AI," Kaplan posted in a statement. "We have carefully reviewed the European Commission’s Code of Practice for general-purpose AI (GPAI) models and Meta won’t be signing it. This Code introduces a number of legal uncertainties for model developers, as well as measures which go far beyond the scope of the AI Act."

So, why kick up a (public) fuss about not signing something Meta was under no obligation to sign? Well, this isn't the first time the company has waged a PR battle against Europe's AI regulations. It previously called the AI Act "unpredictable," claiming "it goes too far" and is "hampering innovation and holding back developers." In February, Meta's public policy director said, "The net result of all of that is that products get delayed or get watered down and European citizens and consumers suffer."

Outmuscling the EU may seem like a more attainable goal to Meta, given that it has an anti-regulation ally in the White House. In April, President Trump pressured the EU to abandon the AI Act. He described the rules as "a form of taxation."

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The EU published its code of practice on July 10. It includes tangible guidelines to help companies follow the AI Act. Among other things, the code bans companies from training AI on pirated materials and requires them to respect requests from writers and artists to omit their work from training data. It also requires developers to provide regularly updated documentation describing their AI features.

Although signing the code of practice is voluntary, doing so has its perks. Agreeing to it can give companies more legal protection against future accusations of breaching the AI Act. Thomas Regnier, the European Commission's spokesperson for digital matters, added more color in a statement to Bloomberg. He said that AI providers who don't sign it "will have to demonstrate other means of compliance." As a consequence, they "may be exposed to more regulatory scrutiny."

Companies that violate the AI Act can face hefty penalties. The European Commission can impose fines of up to seven percent of a company's annual sales. The penalties are a lower three percent for those developing advanced AI models.

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