Can the Bloc Innovate under strict EU Regulations ? As artificial intelligence (AI) technology rapidly evolves, Europe finds itself caught in a regulatory web that may be stifling innovation. While tech companies like OpenAI, Apple, and Meta forge ahead with advanced AI features, consumers across Europe are often left waiting—or missing out entirely—due to the European Union’s strict regulatory environment.
Some industry experts suggest this may be more than a legal issue, pointing instead to a strategic move by companies to apply pressure on EU policymakers. With global AI innovations shaping the future of technology, the question lingers: is the EU’s rigorous approach to regulation inadvertently hindering its ability to remain competitive?
How EU Regulations Are Slowing AI Rollouts
Europe’s strict regulations, particularly the General Data Protection Regulation (GDPR) and the Digital Markets Act (DMA), are often cited as key reasons why certain AI innovations are delayed—or skipped entirely—in the region.
One recent example is OpenAI’s ChatGPT with its much-anticipated Advanced Voice Mode, which launched in the UK but not in the EU. Experts point to legal uncertainty around GDPR compliance, suggesting that the need for pre-launch reviews by the EU’s data commissioner may be a roadblock.
Moreover, Apple announced that its AI-capable iPhone 16 would not be available in Europe due to complications arising from the Digital Markets Act. Apple argued that opening up its iOS and API products to third-party developers, as mandated by the DMA, would expose users to potential security risks.
Similarly, Meta’s AI upgrade for its Llama product was not rolled out in Europe due to concerns about meeting GDPR requirements.
According to Bill Echikson, Senior Fellow at the Digital Innovation Initiative, the driving force behind these decisions is often legal uncertainty. “The main reason is fear that they may break regulations,” Echikson told Euronews Next. This uncertainty, he says, has led tech giants to hesitate, or even avoid, launching products in the European market altogether.
A Strategic Move to Pressure Policymakers?
While legal compliance is undoubtedly a key factor, some experts believe that tech companies are leveraging the situation to apply pressure on EU regulators. Giorgos Verdi, Policy Fellow at the European Council on Foreign Relations, noted that withholding AI technology from Europe could be a calculated move. “It has long been the demand of these companies to either remove some of these obligations altogether or simplify them. And so this is a great tactic,” Verdi said.
By delaying launches in the EU, companies may be trying to influence the region’s regulatory framework, pushing for simplified or relaxed regulations that would make it easier to introduce cutting-edge technology. The recent decisions by Apple and Meta to opt-out of signing the EU’s AI Pact, a non-binding commitment to the EU AI Act, further signal resistance to Europe’s stringent regulatory approach.