AI at a Crossroads: Microsoft Embraces EU Code as Meta Pushes Back on Regulation

Image Source : MSN

A pivotal moment in global AI governance is unfolding as Microsoft signals its intent to sign the European Union’s voluntary Code of Practice for general-purpose AI, while Meta publicly declines, citing legal overreach and innovation risks.

Microsoft’s Supportive Stance

- Microsoft President Brad Smith confirmed the company is likely to sign the code, pending final review

- The code, crafted by 13 independent experts, requires signatories to:

- Publish summaries of training data

- Adhere to EU copyright law

- Implement transparency and safety protocols

- Smith welcomed direct engagement with the EU’s AI Office, viewing it as a constructive step toward responsible innovation

Meta’s Rejection and Industry Concerns

- Meta’s Chief Global Affairs Officer Joel Kaplan announced the company will not sign, calling the code legally uncertain and beyond the scope of the AI Act

- Meta joins 45 European companies in warning that the guidelines could stifle frontier AI development and hinder European startups

- The company prefers to wait for formal enforcement of the AI Act, which begins in August 2026

Implications for AI Regulation

- The Code of Practice offers legal clarity ahead of the AI Act’s full implementation, which includes fines up to 7% of global revenue for non-compliance

- OpenAI and Mistral have already signed, signaling a split among major players

- The EU aims to balance innovation with accountability, especially for models deemed to carry systemic risk

Sources: Reuters, TechCrunch, CNBC, Economic Times, Alpha Spread, Compliance Hub.

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