In recent weeks, the U.S. government has written to the European Commission, requesting a halt to the AI Act
The U.S. believes that the Act targets American tech companies such as Meta and Alphabet, demanding that they bypass third-party regulation to provide AI testing data. The European Union has emphasized that if companies do not comply, they could face fines of up to 7% of their annual revenue. In response, the U.S. has criticized this as a disguised technology tax.
Trump administration pressures the EU to halt the AI Act
According to informed sources, the letter requests the EU to “suspend” the phased implementation of the AI Act entirely and expresses a willingness to send technology professionals to assist the EU in clarifying the details.
However, the White House and the U.S. delegation to the EU have yet to publicly respond to this. EU Commission spokesperson Thomas Regnier confirmed that the letter has been received.
Details of the EU AI Act revealed; non-compliance could incur a fine of up to 7% of annual revenue
The EU AI Act is currently still in draft form. Should companies violate the AI law, they may face:
- Fines of 7% of annual revenue
- An additional 3% fine for developers of advanced AI models
- Stricter scrutiny from European regulatory authorities for non-compliance
U.S. criticizes the EU for overreach, calling technical regulations a disguised tax
The U.S. criticism of the EU’s excessive regulation in the tech sector is not new. Trump had lambasted the EU’s tech regulations as “disguised taxes” at the World Economic Forum (WEF) in Davos this January.
Here are some remarks from the U.S. government criticizing the EU:
- House Judiciary Committee ### Jim Jordan also sent a letter questioning whether EU policies restrict the free speech rights of American citizens.
- White House National Security Council spokesperson Brian Hughes directly rebuked the EU for conducting “economic extortion” following the issuance of a total of 700 million euros in fines against Apple and Meta.
Meta and Alphabet also oppose the current version of the Act
According to current information, major U.S. tech leaders like Meta and Alphabet have strongly opposed the Act:
- Meta’s Global Affairs Director Joel Kaplan stated that the Act is “unworkable and unenforceable,” indicating that the company would not sign the current version.
- Alphabet executives also expressed in an interview with foreign media that the EU’s demand for third-party testing of AI models and adherence to overly strict copyright regulations has exceeded reasonable limits.
The EU AI Act is expected to be finalized next month
This AI code of conduct, led by the European Commission and drafted in collaboration with tech companies, copyright holders, and civil organizations, is expected to be officially published next month. Subsequently, EU institutions and member states will vote on whether to adopt it.
Currently, both sides are still in a heated standoff, and whether the U.S. can successfully pressure the EU to concede will be a focal point for global tech players in the near future.
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