The European Union's new powers, effective from Sunday, enable the Commission to evaluate AI models before their public release in the EU, restrict market access, and impose fines of up to 15 million euros or 3% of annual turnover, whichever is greater.
This regulatory shift raises the stakes for U.S. tech companies, particularly in light of ongoing tensions between the U.S. and the EU over tech sovereignty. Notably, Google faced a $1 billion fine in July for preferential treatment of its services, highlighting the EU's aggressive stance on regulation.
The EU's enforcement capabilities are part of a broader rollout of the 2024 EU AI Act, which aims to ensure that AI technologies are designed and used responsibly. Henna Virkkunen from the European Commission emphasized the potential risks associated with poorly designed AI models.
The EU's push for tech sovereignty is evident as it seeks to reduce reliance on U.S. systems, with ongoing discussions with companies like OpenAI and Anthropic following recent cyber incidents involving their models.
Legal expert Elisabetta Righini noted that the new powers apply to any company offering general-purpose AI models in the EU, regardless of their location, and that non-EU providers must designate an EU-based representative for regulatory communication. The risks of fines extend beyond substantive breaches, as non-compliance with information requests or model evaluations can also incur penalties.
OpenAI and Google have expressed their commitment to adhering to the new regulations as the EU continues to implement the AI Act