In a bold, unified message to European policymakers, Meta, Spotify, Ericsson, and other prominent business leaders issued an open letter warning that the European Union’s fragmented regulatory environment is stifling AI innovation and putting the region at risk of falling behind in the global AI race. The letter, coordinated by Meta and signed by more than two dozen CEOs and technology leaders, underscores the growing concern that Europe’s inconsistent regulatory decisions are hampering its ability to compete with the United States, China, and other regions that are more aggressively embracing artificial intelligence.

“Europe has become less competitive and less innovative compared to other regions and now risks falling further behind in the AI era due to inconsistent regulatory decision-making,” the letter states. This plea echoes the sentiments of Meta CEO Mark Zuckerberg and Spotify CEO Daniel Ek, who recently co-authored a similar letter calling for Europe to embrace open-source AI to remain competitive on the global stage.

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Fragmented Regulation Stifling Innovation

At the core of the open letter is a stark critique of the EU’s regulatory framework, particularly the uneven application of the General Data Protection Regulation (GDPR). While GDPR was designed to harmonize data protection across Europe, business leaders argue that inconsistent interpretations and unpredictable enforcement are creating a barrier to AI development. The inability of European regulators to reach consensus on how AI should use data is, according to these leaders, hindering the continent’s AI innovation.

“Meta has been told to delay training its models on content shared publicly by adults on Facebook and Instagram—not because any law has been violated but because regulators haven’t agreed on how to proceed,” Zuckerberg and Ek wrote in a previous letter, underscoring the frustration with regulatory ambiguity. This delay, they warn, prevents European AI models from being trained on European data, effectively ensuring that the continent’s AI development lags behind its global competitors.

In the most recent letter, the signatories emphasize the growing urgency, warning that without clear, harmonized regulations, Europe risks missing out on the massive economic potential AI promises. “Research estimates that Generative AI could increase global GDP by 10 percent over the coming decade, and EU citizens shouldn’t be denied that growth,” the letter stresses.

The Role of Open-Source AI in Europe’s Future

A significant portion of the letter focuses on the critical importance of open-source AI models—AI technologies that are freely available for developers to build upon and modify. These open models, the letter argues, offer a way for Europe to level the playing field and reclaim its technological edge by enabling small businesses, researchers, and public institutions to harness AI’s transformative potential.

Zuckerberg and Ek have previously highlighted the role of open-source AI in driving innovation, pointing out that it democratizes access to cutting-edge technology and helps institutions maintain control over their data. “The internet largely runs on open-source technologies, and so do most leading tech companies,” the two CEOs wrote. “We believe the next generation of ideas and startups will be built with open-source AI because it lets developers incorporate the latest innovations at low cost and gives institutions more control over their data.”

The letter emphasizes that Europe is particularly well-positioned to capitalize on open-source AI, noting that the region has more open-source developers than the United States. However, without regulatory clarity and support, Europe risks losing its advantage in this critical area. “Fragmented regulation is holding back developers and preventing Europe from realizing its full potential in AI,” the letter warns.

The Economic Stakes

The business leaders who signed the open letter argue that AI presents an unparalleled opportunity to boost productivity, drive scientific research, and add hundreds of billions of euros to the European economy. However, they caution that the current regulatory environment is deterring investment and innovation, both of which are critical to capturing these benefits.

The stakes are particularly high when it comes to multimodal AI models—advanced systems that can process text, images, and speech simultaneously. These models represent the next leap in AI capabilities and could have a profound impact on industries from healthcare to education. However, without access to the latest models, European businesses and researchers will be left using outdated technology. “These concerns aren’t theoretical,” Zuckerberg and Ek warned in their earlier letter. “Given the current regulatory uncertainty, Meta won’t be able to release upcoming models like Llama multimodal… European organizations won’t be able to get access to the latest open-source technology.”

The letter goes on to argue that Europe’s regulatory environment is not just limiting AI development but actively reducing the continent’s competitiveness. “Laws designed to increase European sovereignty and competitiveness are achieving the opposite,” it says, pointing out that many of Europe’s brightest AI talents are leaving the continent for regions with more supportive regulatory frameworks.

A Call for Harmonization and Clarity

Both the open letter and the previous statement by Zuckerberg and Ek emphasize the need for regulatory simplification and harmonization. Europe’s complex and inconsistent regulations, they argue, are creating a hostile environment for AI development and threatening the region’s ability to compete globally. “Europe should be simplifying and harmonizing regulations by leveraging the benefits of a single yet diverse market,” the executives argue, pointing to the widening gap between the number of homegrown European tech leaders and those emerging from the U.S. and Asia.

The letter concludes by urging EU policymakers to take decisive action and create a regulatory framework that fosters innovation while ensuring privacy and security. “With the right regulatory environment, combined with the right ambition and some of the world’s top AI talent, the EU would have a real chance of leading the next generation of tech innovation,” the letter states.

The Race Against Time

As AI continues to evolve at breakneck speed, Europe faces a critical decision: adopt a regulatory framework that supports innovation and fosters growth, or risk being left behind in the global AI race. “On its current course, Europe will miss this once-in-a-generation opportunity,” Zuckerberg and Ek warned. “Because the one thing Europe doesn’t have, unless it wants to risk falling further behind, is time.”

For now, the message from Europe’s business leaders is clear: the continent’s fragmented regulatory environment is holding back AI innovation, and without urgent reforms, Europe risks missing out on the transformative potential of artificial intelligence. The time to act, they argue, is now.