Meta Rejects EU AI Code Ahead of AI Act Rollout

Why Meta Refuses to Sign the EU’s AI Code of Practice

Meta’s refusal to sign the European Union’s new AI code of practice is making headlines—and for good reason. With the EU AI Act set to roll out in just a few weeks, many are asking: what does this decision mean for the future of artificial intelligence in Europe?  Meta refuses to sign EU’s AI code of practice underscores a pivotal standoff between Big Tech and European regulators. In this blog, we break down why Meta declined, what the EU’s AI rules actually involve, and what this tension signals for the broader global AI landscape.

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The code of practice is a voluntary set of guidelines developed by the European Commission to help tech companies align with the AI Act before enforcement begins. Meta, however, has publicly pushed back, claiming the framework introduces legal uncertainties and overreaches its authority. While companies like Google and OpenAI have signaled some cooperation, Meta’s strong stance hints at larger strategic, legal, and ethical disagreements that could shape how AI is regulated and deployed across the globe.

Meta Refuses to Sign EU’s AI Code of Practice: What’s at Stake

So, what exactly is in the code Meta declined to sign? Published earlier this month, the EU’s code of practice for general-purpose AI (GPAI) models requires companies to proactively document their AI systems, ensure transparency about training data (especially around copyrighted content), and respect opt-outs from content creators. Essentially, it’s a blueprint for responsible AI development—meant to guide companies until the AI Act becomes mandatory.

Meta’s global affairs chief Joel Kaplan said the company won't sign the code because it goes beyond the scope of the AI Act and creates "legal uncertainties" for model developers. He warned that the rules could “throttle innovation” and “stunt European AI progress.” Meta’s stance suggests the company sees the framework not as a helpful transition tool but as a restrictive prelude to rigid regulation. The refusal also reflects broader industry concerns: many tech giants feel the EU’s approach is too top-down, prescriptive, and likely to stifle the open-source and rapid experimentation that defines frontier AI.

Still, by refusing to sign, Meta may risk reputational damage, limited access to EU markets, or stricter scrutiny when the AI Act is enforced. For a company investing billions in AI, this is a calculated risk—and a sign of deeper disagreement about how AI should be governed globally.

Understanding the EU’s AI Act and Why It’s Causing Pushback

The EU AI Act is the world’s first comprehensive legal framework for AI regulation. It adopts a risk-based approach, banning AI systems with “unacceptable risk” (like cognitive manipulation or social scoring) and tightly regulating “high-risk” systems used in sectors like hiring, education, or biometric surveillance. Developers must register systems, implement risk management protocols, and meet transparency standards.

While the goals—safety, fairness, and accountability—are broadly supported, tech companies have raised several red flags. For one, compliance could become expensive and time-consuming, especially for smaller players or open-source developers. Secondly, the act doesn’t distinguish between fast-moving general-purpose models and domain-specific AI, which critics argue could limit experimentation and innovation. Meta’s decision not to sign the practice code reflects these worries—signaling that the company doesn’t believe the EU is striking the right balance between innovation and regulation.

Despite industry pressure, the European Commission is standing firm. It recently published final guidance for GPAI providers, which includes high-impact players like Meta, OpenAI, Anthropic, and Google. These companies must comply fully by August 2027—but the political and legal battles are likely to intensify well before then.

What This Means for AI in Europe and the Global Tech Landscape

Meta’s refusal to sign the EU AI code is more than just corporate defiance—it’s a bellwether for how AI regulation may divide the global tech industry. Europe’s approach is rooted in privacy, safety, and transparency, while the U.S. tends to emphasize innovation, economic growth, and soft governance. This divergence could create what experts call a “splinternet” of AI regulation—where companies must customize products, practices, and even models depending on regional rules.

This also raises questions for AI startups, researchers, and content creators. On one hand, the EU’s push could lead to a more ethical, rights-respecting AI ecosystem. On the other, overly complex rules might drive innovation and investment elsewhere. For Meta, which has had past clashes with EU regulators over privacy (remember GDPR?), this decision seems to fit a familiar pattern of resistance.

Looking ahead, the battle over AI governance will likely involve courts, lobbying, and perhaps a recalibration of the AI Act itself. Whether Meta’s strategy proves prudent or short-sighted depends on how users, regulators, and lawmakers respond. But one thing is clear: Meta’s refusal to sign the EU’s AI code of practice marks a critical moment in the evolving power dynamics between Big Tech and global governance.

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