Published: July 23, 2025 — In a high-stakes standoff between Silicon Valley and Brussels, Meta Platforms Inc. has officially declined to sign the European Union’s voluntary AI Code of Practice. As reported by Tech in Asia and confirmed by EU Commissioner Margrethe Vestager’s office, the refusal comes just days before the EU’s broader AI Act begins full enforcement on August 1, 2025.

This development could set the tone for years of legal and diplomatic conflict over the ethical use of artificial intelligence—and put Meta in the crosshairs of both regulators and the public.

Why Meta Refused

According to company insiders, Meta’s legal team advised against signing the non-binding code due to its vague language, potential exposure to litigation, and concerns about setting a precedent for broader algorithmic disclosures.

“We support AI transparency,” said a Meta spokesperson, “but not frameworks that could later be used to restrict innovation or open the door to conflicting jurisdictional obligations.”

Critics, however, view the refusal as yet another example of Big Tech stonewalling regulation. EU officials argue that Meta's refusal undermines efforts to create an ethical baseline for AI development and deployment—particularly around generative models, data provenance, and algorithmic bias.

What the EU Code of Practice Requires

The AI Code of Practice, introduced earlier in 2025 as a transitional tool before the EU AI Act becomes enforceable, asks signatories to:

• Label AI-generated content clearly
• Disclose data sources used in training large language models
• Mitigate risks associated with hallucination, bias, and misuse
• Allow for limited third-party auditing

While voluntary, the code is seen as a litmus test of corporate responsibility. Most major AI companies—including Anthropic, Mistral, and OpenAI—have either signed or indicated intent to comply.

The July 2025 Backdrop

This week marks a turbulent time for AI governance. Just days ago, California’s court system implemented strict generative AI rules, and the BRICS nations endorsed a UN-led framework for global AI ethics. Meta’s decision comes not in a vacuum, but in the midst of heightened global scrutiny over AI’s power, transparency, and influence.

Adding to the stakes, the EU’s Digital Markets Act (DMA) is already squeezing Big Tech's control over data ecosystems, with new fines being levied on repeat violators. Meta now risks antagonizing regulators who are actively writing the rules of the road for the next decade of digital infrastructure.

What This Means for AI Developers and Users

For developers, Meta’s defiance signals a split path: one defined by compliance and collaboration, the other by caution and confrontation. Many in the open-source AI community worry that this divide could lead to a fractured regulatory landscape where AI tools face wildly different standards depending on geography.

For everyday users, this move raises questions about trust. Will users tolerate products built by companies that resist transparency? Or will this simply be another instance where convenience outweighs concern?

Helpful Sources & Further Reading

• Tech in Asia – Meta Refuses to Sign EU AI Code
• European Commission – The EU Approach to AI
• Politico – The AI Act Explained

What Happens Next?

With enforcement looming and global regulatory efforts converging, Meta may be forced to revisit its position. EU officials have hinted that companies refusing to engage in voluntary self-regulation may face more aggressive oversight under the AI Act.

As generative AI continues to shape economies, cultures, and democracies, the clash between corporate interests and public accountability is far from over. July 2025 is not just a snapshot of conflict—it's the opening chapter of a new era in AI governance.

At WhatIsAINow.com, we’ll keep reporting from the frontlines of AI’s evolution. Stay vigilant. Stay informed.