U.S. President Donald Trump is mounting pressure on the European Union to back down from its upcoming artificial intelligence (AI) code of practice, which seeks to tighten the rules around transparency, risk management, and copyright compliance for advanced AI systems.
According to a Bloomberg report citing sources familiar with the matter, the U.S. Mission to the EU sent a letter to the European Commission and several European governments, objecting to the current draft of the voluntary rulebook.
While not legally binding, the code is designed to help companies align with the EU’s AI Act, which carries penalties of up to 7% of a company’s global annual turnover for violations.
Critics, however, argue the new guidelines go beyond the original law and place excessive burdens on developers.
Tensions between U.S. and EU
This latest move brought to fore the growing tensions between the U.S. and the EU over digital regulation.
Trump, who has consistently railed against the EU’s tech policies, has described them as a form of “economic taxation” on American companies.
In January at the World Economic Forum in Davos, he accused the bloc of unfairly targeting U.S. firms.
- Meanwhile, U.S. lawmakers like House Judiciary Chairman Jim Jordan have raised concerns that EU policies may also impact American free speech.
- Tech giants are also pushing back. Meta’s global affairs head, Joel Kaplan, recently called the proposed code “unworkable” and signaled the company wouldn’t sign it in its current form.
- Alphabet has also criticized parts of the rulebook, particularly clauses related to copyright enforcement and external model testing.
What you should know
The draft code being finalized by a mix of tech firms, civil society groups, and copyright holders is expected to be unveiled next month.
- This comes as tensions escalate further. Earlier this week, the European Commission fined Apple and Meta a combined €700 million ($798 million) for antitrust violations.
- The European Union handed out its first major fines under the new Digital Markets Act (DMA), slamming Apple with a €500 million penalty and Meta with €200 million.
In response, Apple accused the European Commission of unfair treatment.
“These decisions are bad for the privacy and security of our users, bad for products, and force us to give away our technology for free,” Apple said.
- The tech giant argued that the EU is unfairly targeting successful American companies, while letting European and Chinese firms operate under a different set of rules.
- Meta, which owns Facebook and Instagram, also criticized the ruling, saying it’s being forced to overhaul its business model. The company had introduced a “pay-or-consent” option in late 2023, allowing users to choose between a free, ad-supported experience (with tracking) or a paid ad-free version.