Big Tech Executives Criticize EU AI Regulation For Stifling Innovation

Top executives from giant tech companies Google and Meta, have expressed concerns that Europe’s stringent Artificial Intelligence (AI) regulations are stifling innovation.

These concerns align with criticism from Donald Trump’s administration, which accused the EU of prioritizing regulation over innovation. Recall that U.S. Vice President JD Vance while addressing the Artificial Intelligence Action Summit in Paris earlier this month, disclosed that the Trump administration will work to make the US the “gold standard worldwide” for artificial in as he issued strong warnings against regulating political speech.

The vice president further urged European governments to “look to this new frontier with optimism, rather than trepidation” and warned that “excessive regulation” of AI technologies could “kill a transformative industry.”

Speaking recently at the Techarena tech conference in Stockholm, Sweden, public policy leaders from Google and Meta, argued that the European Union’s strict regulatory framework, including the Al Act and GDPR, is delaying product launches and hindering technological advancements.

Chris Yiu, Meta’s Director of Public Policy, criticized the EU’s regulatory approach, calling it fragmented and overly restrictive. “Sometimes it’s too fragmented, like GDPR, sometimes it goes too far, like the Al Act,” Yiu stated. He argued that these regulations ultimately hurt European consumers by delaying innovative products.

As an example, Yiu showcased Meta’s Al-powered Ray-Ban glasses, which offer real time language translation and image descriptions for the visually impaired. He emphasized that regulatory hurdles slowed their European rollout, as Meta had to navigate compliance with complex EU regulations.

Google DeepMind’s Head of Public Policy, Dorothy Chou, also criticized the timing of the Al Act, noting that it was introduced before transformative Al models like ChatGPT even emerged. “There is a way to use policy to create a better investment environment,” she said, citing the U.S. Inflation Reduction Act as an example of business-friendly regulation.

“I think what’s difficult is when you are regulating on a time scale that doesn’t match the technology. I think what we need to do is both regulate to ensure that there is responsible application of technology, while also ensuring that the industry is thriving in all the right ways”, Chou added.

Tech firms have reportedly ramped up lobbying efforts to push back against the Al Act, arguing that it imposes impractical and technically unfeasible requirements. Recently, Meta’s Chief Global Affairs Officer, Joel Kaplan, suggested the company would not comply with the EU’s proposed code of practice for general-purpose Al models, calling it overly restrictive.

Notably, the U.S tech giants fight against EU regulation on AI, comes with the backing of US President Donald Trump. These companies are confident in their efforts to challenge EU regulations, believing that backing from the Trump administration will allow them to fight what they see as hostile rules on artificial intelligence and market dominance.

Facebook’s owner Meta has this year led the charge against the ET’s AI Act, according to people familiar with its strategy, with tech lobbyists in the bloc believing they can successfully water down implementation of a law considered the world’s strictest regime over cutting edge technology.

Meanwhile, amidst the call for soft EU rules, dozens of tech companies have already called on the EU to properly enforce its digital rules accusing big tech companies of seeking to mobilize the Trump administration and to stifle potential competitors.

The commission’s Virkkunen said lobbying would not change its rules, reminding the US companies that the European Union is one of the biggest markets for Big Tech.