Diverging Tech Giants Reflect Split Over AI Regulation in Europe
Microsoft appears poised to endorse the European Union’s new voluntary code of practice on artificial intelligence, a move aimed at ensuring smoother compliance with the bloc’s landmark AI Act, which took effect in June 2024. In contrast, Meta Platforms has rejected the framework, citing concerns over legal ambiguity and regulatory overreach.
The code, developed by a panel of 13 independent experts, is designed to help companies align with the EU’s AI Act by offering greater legal certainty. Signatories would be required to publish summaries of the training data used in their general-purpose AI models and establish policies to adhere to EU copyright law—a significant step toward transparency and accountability in the fast-moving AI space.
Microsoft Leaning Toward Adoption
Speaking to Reuters on Friday, Microsoft President Brad Smith indicated that the company is seriously considering signing the code.
“I think it’s likely we will sign. We need to read the documents,” Smith said, adding, “Our goal is to find a way to be supportive, and at the same time, one of the things we really welcome is the direct engagement by the AI Office with industry.”
Microsoft’s measured endorsement comes as it continues to expand its AI offerings, particularly through its deepening partnership with OpenAI. A cooperative approach with regulators could signal the company’s intent to lead in responsible AI governance while maintaining competitiveness.
Meta Stands Firm in Opposition
In sharp contrast, Meta Platforms has reiterated its opposition to the EU's voluntary code. In a blog post published on LinkedIn, Joel Kaplan, Meta’s Chief Global Affairs Officer, criticized the guidelines as going “far beyond the scope of the AI Act.”
“Meta won’t be signing it. This code introduces a number of legal uncertainties for model developers,” Kaplan stated.
“We share concerns raised by 45 European businesses that this overreach will throttle the development and deployment of frontier AI models in Europe, and stunt European companies looking to build businesses on top of them.”
Meta’s position aligns with growing industry resistance in certain sectors, where developers fear that increased regulation may hinder innovation and erect new barriers for emerging AI startups.
Wider Implications for the AI Ecosystem
The EU’s voluntary code is not legally binding, but it represents an important soft law mechanism to guide industry practices ahead of full implementation of the AI Act’s provisions. The Act will eventually apply to global tech giants including Alphabet (Google), OpenAI, Anthropic, Mistral, and thousands of other firms deploying general-purpose AI systems.
As one of the most comprehensive AI regulations globally, the EU framework is being closely watched by policymakers and companies alike. The current divide between Microsoft’s cautious cooperation and Meta’s outright rejection illustrates the growing tensions between regulatory ambition and industry autonomy in shaping the future of artificial intelligence.
With regulatory frameworks tightening across jurisdictions, the path companies choose now may define their operational freedom—and reputational standing—in the evolving AI landscape.
