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The US Mission to the European Union has sent a letter to the European Commission expressing opposition to the AI Code of Practice, a regulatory framework aimed at governing artificial intelligence (AI) development in Europe. The letter, sent under the Trump administration, criticizes the EU’s digital framework, arguing that it stifles innovation and hampers growth in the tech sector. Meanwhile, investigations by Corporate Europe Observatory (CEO) and LobbyControl have revealed significant influence from Big Tech companies in shaping the Code, raising concerns over the transparency and fairness of the process.

The Role of Big Tech in Shaping the AI Code

The AI Code of Practice, designed to ensure ethical AI development, has been the subject of growing scrutiny. According to a report by CEO and LobbyControl, major tech companies like Google, Microsoft, Meta, Amazon, and OpenAI played an influential role in the drafting of the Code. These companies were given exclusive access to workshops with EU officials, where they were able to shape the guidelines behind closed doors, leaving many other stakeholders, including rights groups and smaller businesses, with limited input.

The investigation, based on interviews and lobbying documents, highlights how Big Tech’s presence in the process diluted the oversight originally intended for AI regulation. These companies, already dominant in the AI field, gained privileged access to discussions that would determine the framework’s structure, potentially giving them an unfair advantage in the regulatory landscape.

Concerns Over Copyright and AI Governance

Critics, including rights groups and publishers, have voiced concerns that the Code may undermine existing copyright laws and allow tech companies to bypass important regulations. According to CEO researcher Bram Vranken, the European Commission’s deregulation agenda has given tech firms greater influence over policymaking. Vranken warned that the EU’s push for “competitiveness” in the tech sector has opened the door to aggressive lobbying efforts by industry giants, which may ultimately weaken the governance of AI systems.

The potential for AI to disrupt industries, including media and publishing, is significant. Publishers fear that the Code could diminish their control over content and intellectual property, giving tech companies even more power in shaping how AI interacts with existing legal frameworks. As AI technologies continue to evolve rapidly, concerns about the balance of power between corporations and public interests remain a key issue in the debate over AI regulation.

Limited Access for Civil Society Groups

One of the main points of contention in the development of the AI Code is the unequal access granted to various stakeholders during the consultation process. While tech giants were granted priority access to workshops and plenary sessions, civil society groups, publishers, and small to medium-sized enterprises (SMEs) were often restricted to limited forms of participation. For example, these groups were only able to engage through emoji-based voting on the SLIDO platform, which many critics argue is an inadequate form of involvement in such an important regulatory process.

CEO and LobbyControl’s investigation suggests that this imbalance in access tilted the drafting process in favor of powerful AI developers. The report indicates that the influence of Big Tech companies weakened provisions meant to regulate the most advanced general-purpose AI systems, which could have far-reaching consequences for sectors like healthcare, finance, and public services. This raises questions about the transparency of the process and whether it truly represents the interests of all stakeholders, particularly those who might be affected by AI in more vulnerable ways.

The European Commission’s Response and Future Plans

In response to the US letter, a spokesperson from the European Commission confirmed that the letter had been received but declined to provide further comments on its potential impact. The Commission also refrained from confirming whether it would meet its original deadline of 2 May for releasing the AI Code and general-purpose AI guidelines.

Despite this uncertainty, officials now expect the final version of both the guidelines and the AI Code to be published by May or June 2025. However, the ongoing concerns about the lack of transparency and the imbalance in stakeholder participation suggest that further scrutiny of the process is likely. As the EU moves closer to finalizing the AI Code, critics continue to warn that without addressing these concerns, the framework may fail to achieve its intended goals of ensuring ethical AI development and protecting public interests.

The controversy surrounding the development of the AI Code of Practice underscores the complex challenges of regulating rapidly advancing technologies in a globalized market. As major tech companies continue to exert significant influence over policymaking in the EU, it is crucial that the European Commission works to ensure a more balanced and transparent process. The future of AI governance will likely depend on whether regulators can strike the right balance between fostering innovation and protecting public interests. As the situation develops, continued attention to the Code’s final form will be necessary to ensure it aligns with democratic principles and ethical standards.