bbieron@platformeconomyinsights.com

Final Draft Code of Practice for EU’s Big AI Regulatory Regime Released

Jul 1, 2025

Report from TechCrunch

In Brief – The European Commission has announced the release of the final draft AI Code of Practice that gives “voluntary” guidelines to AI developers to help them comply with AI regulation under the EU’s AI Act. The code focuses on copyright protection, transparency into the development and operation of AI systems, and “safety”. AI developers are not required to abide by the guidelines, but the Commission, which will be phasing in enforcement of the AI Act over the coming two years, is encouraging adoption by saying that AI developers who agree to the practices could benefit from a “reduced administrative burden and increased legal certainty,” while those that do not may find proving compliance more costly. Among the most controversial aspects of the code are its copyright provisions, which include asking AI developers to never pirate materials for training, allow rights holders to opt their content out, abide by technical efforts to block content gathering web-crawlers, and share detailed information about the composition and collection of their training data. The code’s safety guidance calls for company monitoring of numerous harms, including cybersecurity breaches, disruptions of critical infrastructure, and serious harm to mental or physical health, with timelines to report serious incidents to the EU’s AI Office. The code must be approved by the European Commission and EU member states amid ongoing industry pushback.

Context – Following the release of Chat-GPT, the European Parliament changed course on the AI Act and pushed to regulate core “foundation models”. This shift was divisive among EU-based AI innovators, and concerns have only grown. The USUK, and Japan have since focused on encouraging AI investment rather than regulation. Some European government leaders, backed by the Draghi Report critical of over-regulation in Europe, have joined in, and top EU business and tech leaders are calling for an AI Act delay. But EU parliamentarians and civil society groups have pushed back, and the emerging discrepancy over AI training and copyright law between the US and EU may prove particularly significant.

View By Monthly
Latest Blog
OpenAI Reaches Defense Department Deal Flanking Anthropic

Report from the New York Times In Brief – OpenAI says it has reached agreement with the US Department of Defense (DoD) to supply AI for classified systems in a manner that the company says addresses its opposition to the technology being misused in autonomous weapons...

Federal Judge Blocks Virginia’s One-Hour Time Limit for Social Media

Report from Reuters In Brief – US District Judge Patricia Tolliver Giles has issued a preliminary injunction blocking Virginia from enforcing Senate Bill 854 that imposes a time limit on teens using social media platforms with so-called “addictive” features. Platforms...

FTC Chairman Accuses Apple of News Media Viewpoint Discrimination

Report from the New York Times In Brief – The Federal Trade Commission announced that it sent a warning letter to Apple CEO Tim Cook expressing concerns that the operations of the Apple News may favor certain political viewpoints in a way that conflicts with Apple’s...

PM Starmer Proposes Bringing AI Chatbots Under the UK Online Safety Act

Report from Bloomberg In Brief – UK Prime Minister Keir Starmer has announced plans to bring AI chatbots directly under the Online Safety Act (OSA) to close what he called a “legal loophole” in Britain’s online safety regime and ensure that they are designed to not...

Reddit Fined By UK ICO for Failing to Age Check 13-Year-Olds

Report from the BBC In Brief – The UK’s data protection regulator, the Information Commissioner's Office (ICO), has fined Reddit more than £14 million for failing to adequately enforce its rules regarding children under 13 accessing the platform. Following an...

Platform Economy Insights produces a short email four times a week that reviews two top stories with concise analysis. It is the best way to keep on top of the news you should know. Sign up for this free email here.

* indicates required