Meta Refuses to Sign EU AI Code, Calling It Overreach That Will Stifle Innovation

Meta Platforms has officially declined to sign the European Union’s voluntary code of practice on artificial intelligence, arguing that the framework represents regulatory overreach that could hinder innovation and growth in the tech sector.

Meta: “Europe Is Heading Down the Wrong Path” on AI

In a post published Friday on LinkedIn, Joel Kaplan, Meta’s Global Policy Chief, sharply criticized the EU’s approach to AI governance:

“Europe is heading down the wrong path on AI. 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.”

EU Tightens AI Oversight with Voluntary Code

Last week, the European Commission, the executive arm of the EU, released its final version of a non-binding Code of Practice for General Purpose AI Models. While participation is optional, the code is viewed as an early step toward full compliance with the EU AI Act, which comes into effect next month.

The new rules aim to enhance transparency, accountability, and safety around powerful AI models — such as large language models (LLMs) — that are deployed across multiple sectors and applications.

Meta Raises Concerns About Legal Risks and Innovation

Meta’s refusal to sign underscores broader industry concerns about the EU’s regulatory approach. The company says the code could introduce unnecessary legal complexity and impose obligations that could slow down product development and stifle smaller developers or startups.

“We support transparency and accountability,” Meta said, “but the frameworks must be clear, balanced, and innovation-friendly.”

While Meta isn’t dismissing AI regulation entirely, the company believes the EU code sets a precedent of overregulation, particularly when it targets foundational technologies that are still evolving.

A Global Race: Regulation vs. Innovation

As the U.S. and China continue to ramp up AI development with more flexible and adaptive approaches, Europe risks falling behind if its rules become overly burdensome. The AI Code, while well-intentioned, may signal to tech companies that operating in the EU comes with higher compliance costs and greater uncertainty.

With the AI Act poised to become one of the world’s most comprehensive legal frameworks for artificial intelligence, the decisions made today could shape how and where companies invest in AI for years to come.