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🔆 Meta vs. The EU AI Code of Practice
Meta's refusal strategy, Netflix' first GenAI show and heart disease diagnostics improve
Emma G Moller & Allegra Guinan
July 24, 2025
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🗞️ Issue 80 // ⏱️ Read Time: 7 min
In this week's newsletter
What we're talking about: Meta's strategic decision to reject the EU's voluntary Code of Practice for general-purpose AI models, despite mounting regulatory pressure and potential market consequences.
How it's relevant: As the EU AI Act becomes the world's first comprehensive AI regulation, the responses from major tech companies will set precedents for global AI governance and determine whether voluntary compliance can work alongside mandatory rules.
Why it matters: This standoff reveals the deeper tensions between innovation and regulation, corporate strategy and public interest. Understanding these dynamics helps us grasp what's at stake in the emerging global framework for responsible AI development.
Hello 👋
The battle lines are drawn in Brussels. As the EU pushes forward with implementing the AI Act, Meta's recent refusal to sign the EU's Code of Practice for AI has sparked a debate that goes far beyond legal compliance: It's a fundamental clash over who gets to shape the future of AI governance.
The Regulatory Landscape: Setting the Stage
The European Union's AI Act, now in force, represents the attempt to prevent what regulators call a "race to the bottom" in artificial intelligence development. The legislation aims to ensure AI systems are developed and deployed safely, transparently, and in ways that protect fundamental rights.
However, the path to implementation hasn't been smooth. Major European technology companies, including ASML, SAP, and Mistral AI, along with over 110 other organizations, have formally asked the European Union to delay implementation. In a letter to European Commission President Ursula von der Leyen, these business leaders argue that the forthcoming regulations could jeopardize the EU's position in global AI innovation and call for a more "innovation-friendly regulatory approach."
Despite this industry pushback, the European Commission announced that implementation will continue as planned and launched the EU's Code of Practice as a bridge between regulatory requirements and practical compliance.
Understanding the AI Code of Practice
The EU's AI Code of Practice serves as a voluntary framework designed to help companies implement the AI Act's requirements: