A coalition of major tech companies, including Meta and Spotify, criticized the European Union on Thursday for what they described as "fragmented and inconsistent" regulatory decisions on data privacy and artificial intelligence (AI). The companies, alongside researchers and industry organizations, signed an open letter urging the EU to streamline its decision-making processes in order to boost competitiveness and provide clarity around AI development.
The letter highlights growing frustrations over the EU's handling of data privacy issues under the General Data Protection Regulation (GDPR), which has created significant uncertainty for businesses looking to use European data for AI training. The signatories argue that inconsistent regulatory interventions are hampering innovation and could cause Europe to fall behind in the global AI race.
"In recent times, regulatory decision making has become fragmented and unpredictable, while interventions by the European Data Protection Authorities have created huge uncertainty about what kinds of data can be used to train AI models," the letter stated.
Meta, which owns platforms such as Facebook, Instagram, and WhatsApp, recently paused plans to use European user data for AI training following pressure from privacy regulators. This follows a trend of tech companies delaying the launch of new products in the European market due to concerns over legal clarity. Meta, for example, delayed the EU-wide release of its Threads app, a Twitter competitor, citing regulatory uncertainties.
The tech giants argue that without "harmonized, consistent, quick, and clear decisions" from EU regulators, the region could lose its edge in the rapidly advancing field of AI. Google has similarly held back the release of some AI tools in Europe, awaiting legal clarity around data usage and compliance with the EU's stringent privacy rules.
Despite the companies' concerns, the European Commission reiterated that all companies operating within the EU must comply with the GDPR. In addition to data privacy rules, the EU has taken a leading role in regulating AI, with the bloc's AI Act becoming one of the first comprehensive laws aimed at preventing AI misuse.
Meta, in particular, has been hit with record fines under the GDPR, including a billion-euro penalty for privacy violations. The tech companies' criticisms underscore the growing tension between the desire for innovation in AI and the need for strong data privacy protections in Europe. As the EU continues to implement its AI Act, it remains to be seen how regulators will balance fostering AI development with safeguarding user data.
