Story Highlight:
- Meta has paused its AI product launches in the European Union due to regulatory uncertainty surrounding GDPR.
- Apple’s concerns with EU regulations focus on the DMA, which may compromise user privacy and data security.
- Meta plans to continue AI product rollouts in the UK, citing fewer regulatory hurdles than the EU.
Meta, the tech giant behind Facebook and Instagram, has announced it will pause releasing new AI products in the European Union. This decision follows Apple’s similar moves, which withheld several AI-powered features from iPhone users in the EU in June. Both companies have cited “regulatory uncertainty” for their actions.
Regulatory Hurdles Delay AI Advances
In an exclusive statement to Axios on July 17, a Meta spokesperson said, “We will release a multimodal Llama model over the coming months, but not in the EU due to the unpredictable nature of the European regulatory environment.” Meta’s decision underscores tech companies’ challenges in navigating EU regulations, particularly the General Data Protection Regulation (GDPR).
While Apple and Meta share concerns over EU regulations, their issues stem from different laws. Apple’s main concern lies with the Digital Markets Act (DMA), which requires “gatekeepers” like Apple and Meta to ensure their products and services are compatible with rival platforms. Apple argues that this could compromise user privacy and data security.
Meta’s concerns, however, focus on the GDPR, which limits how companies can use user-generated data. The Irish Data Protection Commission, responsible for enforcing GDPR, recently ordered Meta to pause its AI assistant rollout in the EU over data privacy concerns. Meta claims it uses data from Facebook and Instagram users only with their consent and that users can opt-out.
Meta’s AI Plans In The UK
Despite these setbacks in the EU, Meta plans to roll out future AI products, including an upcoming version of its Llama AI model that supports audio and video, in the United Kingdom. Although the UK’s GDPR is nearly identical to the EU’s, Meta reportedly believes that UK regulators are more accommodating and that its data collection policies will face fewer hurdles.
Meta’s decision to halt AI product launches in the EU highlights the growing tension between tech companies and European regulators. As the regulatory landscape continues to evolve, companies like Meta and Apple must navigate these challenges to bring innovative AI solutions to market.
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