American Big Tech vs. European Regulators: The AI Battleground
Artificial Intelligence has become the latest contentious issue between American tech giants and European regulators, who are closely monitoring AI services for potential privacy, antitrust, and consumer protection violations.
Apple and Meta Withhold AI Features in Europe
In recent weeks, Apple and Meta have delayed the release of new AI features in the European market to avoid potential penalties. However, the vast size of the European market might compel these companies to address regulatory concerns.
Apple Intelligence and DMA Compliance Fears
Apple recently unveiled Apple Intelligence, a suite of new AI features, including the integration of ChatGPT into iOS. However, due to concerns that its deal with OpenAI might violate the EU’s Digital Markets Act (DMA), Apple has postponed the rollout of these features for EU users.
“We are concerned that the interoperability requirements of the DMA could force us to compromise the integrity of our products in ways that risk user privacy and data security,” Apple stated.
While US customers will access the new AI features later this year, EU iPhone users will have to wait until Apple can ensure the software upgrade complies fully with the DMA.
Balancing Regulatory Compliance
Apple faces a challenging situation: non-compliance with DMA regulations could result in fines of up to 10% of its global turnover. On the other hand, not providing the same AI features and services in the EU as in other regions could harm its business in Europe.
This regulatory challenge is not unique to Apple. Meta is also navigating similar issues, although its concerns are more focused on privacy laws than antitrust regulations.
Meta’s AI Data Gathering and GDPR Complaints
In early June, Meta announced changes to its privacy policy that would allow the company to use personal data from millions of Europeans to train its AI models. This move drew criticism from Max Schrems, a well-known privacy advocate who has previously sued Meta for violating the EU’s General Data Protection Regulation (GDPR).
“Meta is basically saying that it can use ‘any data from any source for any purpose and make it available to anyone in the world’, as long as it’s done via ‘AI technology’. This is clearly the opposite of GDPR compliance,” said Schrems.
Through his campaign group noyb, Schrems filed complaints with 11 EU privacy watchdogs, including the Data Protection Commission (DPC) in Ireland.
Meta AI Launch Delayed in Europe
Following these complaints, Meta has suspended its plans to use data from EU and UK citizens to train its AI systems and has delayed the launch of Meta AI in the region. Meta AI, built on Llama 3, is intended to rival ChatGPT and integrate into platforms like Facebook Messenger, Instagram, and WhatsApp.
Stefano Fratta, Meta’s Global Engagement Director, defended the company’s approach, stating, “We are following the example set by others, including Google and OpenAI, both of which have already used data from Europeans to train AI. Our approach is more transparent and offers easier controls than many of our industry counterparts.”
The Likelihood of Compromise
Both Apple and Meta maintain that offering new AI services without violating European regulations is currently unfeasible. However, history suggests that regulators are unlikely to back down in such standoffs. In similar past situations, American companies have often been forced to compromise.
Meta, for instance, has previously threatened to withdraw its services from the EU but has never followed through. For Apple, permanently limiting AI features for European users is also not a viable long-term strategy. Ultimately, US tech giants will need to find ways to deploy AI services that comply with European regulations.
Source: ccn.com
