eu ai act faces pushback: meta stands apart
Brussels, Wednesday, 23 July 2025.
the eu ai act is facing strong opposition. over 45 european companies voiced concerns about the eu’s preemptive ai regulation. meta has refused to sign the ‘code of practice for general-purpose ai models’. this voluntary code supports the ai act, which takes effect on august 2nd. mistral, openai, and microsoft are likely to sign the code. meta argues that the eu is on the ‘wrong track’ and the rules would stifle innovation. meta’s refusal highlights growing industry pressure.
industry concerns and meta’s stance
The EU AI Act’s key provisions regarding general AI models are scheduled to take effect on August 2 [1][2][3]. This has created a divide among major tech firms regarding the ‘code of practice for general-purpose ai models’ [1][2]. Mistral, OpenAI, and Anthropic have committed to signing it, with Microsoft likely to follow [1][2]. Meta, however, has explicitly refused [1][2][3]. Meta’s head of global affairs, Joel Kaplan, stated that these rules would hinder technological innovation, cautioning that Europe is heading in the wrong direction concerning AI [1][2][3].
regulatory perspectives and potential impacts
The EU Commission released the code of conduct on July 10, offering AI firms a practical way to comply with the AI Act, though it is non-binding [1][2][3]. EU Commission spokesperson Thomas Regnier noted that all general AI model providers must adhere to the law, regardless of signing the code, but non-signatories might face more frequent regulatory evaluations [1][2][3]. Over 45 influential European companies have urged the EU Commission to suspend the AI Act’s most stringent requirements for at least two years, reflecting significant industry apprehension [1][2].
expert opinions and compliance
Wu Han, a partner at King & Wood Mallesons, observed that the EU often emphasizes ex-ante regulation in its digital legislation, creating a comprehensive regulatory system [1][2]. Gry Hasselbalch, founder of dataethics.eu, stated that companies like Meta must still comply with the AI Act, regardless of signing the code [2][3]. She views signing the code as a mere formality, as companies must still adhere to transparency, copyright, and security requirements [2][3]. The EU AI law is viewed by some experts as setting a new global standard [3].
market and investment implications
Meta’s refusal to sign the code, coupled with the opposition from numerous european firms, introduces uncertainty for investors [1][2][3]. The potential for stricter regulatory assessments for non-signatories could increase operational costs for Meta, impacting profitability and potentially depressing its stock value [1][2]. Conversely, the argument that the ai act stifles innovation could resonate with investors who prioritize long-term growth, potentially offsetting negative sentiment [1][2]. Investors should closely monitor regulatory developments and company responses to gauge long-term implications [2].