Tech Regulatory Tensions Rise as Meta Rejects EU AI Code; Porsche Cuts Costs Amid China Slump

Meta (META) has signaled a significant divergence from European regulatory efforts, with its Chief Global Affairs Officer, Joel Kaplan, declaring that the company will not sign the European Commission's voluntary code of conduct for general-purpose AI models. Kaplan described the current draft of the code as "unworkable and technically unfeasible," arguing it introduces unnecessary hurdles for Western open-source AI models and pushes Europe "to the sidelines" in the global AI revolution. This stance places Meta in a challenging position with European regulators, especially as the company continues to heavily invest in artificial intelligence technology.

Luxury carmaker Porsche (P911) is preparing for additional cost reductions in the second half of this year, as it seeks to offset the dual pressures of escalating tariffs and declining sales in the critical Chinese market. The company had previously slashed its 2025 revenue outlook and profit margin forecasts due to these challenges, with tariffs alone inflicting a hit of at least 100 million euros in April and May. This strategic move underscores the broader difficulties faced by European automakers navigating global trade tensions and a slowing Chinese economy.

Initial discussions among EU ministers regarding the bloc's budget have been constructive, according to EU's Budget Commissioner Serafin. However, some member nations believe the proposed budget is "not ambitious enough." These ongoing negotiations highlight the differing priorities and fiscal perspectives among EU member states as they work towards a consensus on future spending.