Meta Platforms Inc. (NASDAQ:META) decided not to comply with the European Union’s AI Code of Practice. Joel Kaplan, the new head of global affairs at Meta, made this announcement, escalating the company’s ongoing disputes with European regulators.

What Happened: Kaplan voiced his stance at Meta’s EU Innovation Day event in Brussels, as per Bloomberg. He criticized the Code of Practice, aimed at unifying AI industry regulations across Europe, as “unworkable and infeasible.”

Kaplan believes the Code imposes “additional burdens on Western open source AI models,” aligning with the industry’s current trajectory. He also stated that Meta would keep the U.S. administration updated on the regulatory hurdles it encounters overseas.

Previously, Mark Zuckerberg‘s Meta was forced to postpone the launch of its AI chat assistant in the EU amid regulatory concerns. Kaplan emphasized the U.S. administration’s commitment to supporting and advocating for American technology and tech companies.

Meta, a staunch supporter of open-source technology in AI, has justified its significant investment in the technology, particularly after the rise of a cheaper open-source AI model from a Chinese rival.

Kaplan also announced that Meta will soon introduce Community Notes, a feature allowing users to fact-check content on its platforms in the U.S. This tool is anticipated to replace third-party fact-checkers on social networks.

SEE ALSO: Mark Zuckerberg’s Meta Says Some AI Systems Are Too Dangerous To Release And May Halt Development If It Sees ‘Critical Risk’

In January, the European Consumer Organisation (BEUC) raised concerns about Meta’s “pay-or-consent” data policy, suggesting it might breach consumer protection laws, data privacy regulations, and the Digital Markets Act.

Europe is the second-largest market for Meta after the U.S. In its fourth-quarter results, the company posted an ad revenue growth of 22% for Europe on a user geography basis, exceeding that of North America at 18%.

Meta’s refusal to adhere to the EU’s AI Code of Practice could potentially intensify the ongoing regulatory tensions with the EU. “.. we continue to monitor an active regulatory landscape, including legal and regulatory headwinds in the EU and the U.S. that could significantly impact our business and our financial results.” said Susan Li, the CFO at Meta said during the earnings release on Jan. 29.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.