Meta has decided not to release its new multimodal AI model in the European Union, citing uncertainties in the region’s regulatory framework. This move reflects a broader trend where American tech companies are cautious about launching products in Europe due to complex legal landscapes. The company announced the decision to Axios, calling Europe’s regulatory situation “unpredictable“. Regulatory Concerns and Compliance Challenges Meta intends to unveil a multimodal Llama 3 model soon but has chosen to bypass the EU market given the unclear regulatory environment. This situation is reminiscent of Apple’s recent decision to exclude Apple Intelligence AI features from its European offerings for similar reasons. The Irish Data Protection Commission, Meta’s key privacy regulator within Europe, has not yet issued a statement on the matter. A similar decision has also been taken in Brazil, where Meta has paused its AI services. During a June event held in Sao Paulo, Meta introduced its AI-powered ad targeting program designed specifically for businesses utilizing the WhatsApp platform. However, earlier this month, the National Data Protection Authority (ANPD) in Brazil suspended the implementation of Meta’s revised privacy policy, which had authorized the use of personal data for training artificial intelligence systems. Effect on the European Market The forthcoming multimodal AI models, capable of processing video, audio, images, and text, are set to integrate with various devices like smartphones and Meta Ray-Ban smart glasses. However, European businesses will miss out on these advancements, though these models will be available under an open license. Non-European firms might also face restrictions in offering services within the EU that utilize these models. Nonetheless, Meta plans to introduce a larger, text-only version of its Llama 3 model to European users. Meta’s primary issue revolves around adhering to the General Data Protection Regulation (GDPR) when using data from European individuals for model training. Earlier this year, Meta announced plans to utilize publicly accessible posts from Facebook and Instagram for this purpose, notifying over 2 billion EU users about their opt-out options. Training was scheduled to start in June, but regulatory authorities intervened, halting the process and issuing numerous privacy-related queries. UK Market and Broader Implications Interestingly, Meta has noted that the United Kingdom, despite having data protection laws similar to GDPR, does not showcase the same regulatory ambiguity. The AI model will be launched for users in the UK. According to Meta, European regulators are generally slower in interpreting existing laws compared to their counterparts in other regions. This development highlights the persistent friction between American tech giants and European regulatory bodies, with the EU being recognized for its stringent privacy and antitrust regulations. Tech firms argue that these regulations negatively impact consumers and reduce European market competitiveness. Meta stresses that access to European data is crucial for its AI models to accurately reflect regional languages and cultures.