Meta’s Chief Global Affairs Officer, Joel Kaplan, has publicly voiced strong criticism of the European Union’s new voluntary Code of Practice for general-purpose AI (GPAI), asserting that “Europe is heading down the wrong path on AI.” Meta refused to sign the code, citing concerns around legal uncertainties, regulatory overreach, and detrimental effects on innovation Financial Time
🔍 Key Highlights
1. Meta Rejects the AI Code of Practice
Joel Kaplan emphasized that the GPAI Code goes far beyond the statutory AI Act by introducing unclear and onerous requirements. Meta declined to participate, joining other critics in warning that Europe’s regulatory direction oversteps necessity and may limit the growth of frontier AI models
2. Broader Industry Pushback
European tech leaders—including Airbus, Philips, Siemens, and SAP—have signed letters urging a two-year delay to AI Act enactment. Siemens and SAP have called the current regulations “toxic” for innovation, arguing they disproportionately burden smaller firms and slow down AI adoption across the continent. The Capgemini CEO also criticized the policy, stating, “In Europe, we went too far and too fast on AI regulation,” likening the fragmented environment to a “legal nightmare”
3. Innovation Vulnerability
Industry voices such as Ericsson’s CEO have warned that fragmented and unpredictable regulations are making it almost impossible to scale AI in Europe. Uncertainty over data usage, model compliance, and inconsistency across member states risks pushing startups abroad to the U.S. or Asia
4. EU Clarifies Regulations Amid Backlash
In response to this mounting criticism, the European Commission released new guidelines on July 18, 2025, to help high-risk AI providers comply with the law before its broader enforcement begins in August. These guidelines aim to reduce confusion and ease compliance burdens, especially for foundation models and tech firms working across borders Reuters
🧭 Why This Matters
- Regulation vs Innovation: The tension reflects a larger question: should regulation protect public safety or inadvertently throttle innovation?
- Talent & Investment: Excessive red tape may drive European startups and AI talent to relocate to more permissive markets.
- Global Competitiveness: Critics argue Europe’s AI Act, while pioneering, may cost the region its shot at tech leadership.
