Why it matters:

The move sets up a showdown between Meta and EU regulators and highlights a growing willingness among U.S. tech giants to withhold products from European customers.

State of play:

"We will release a multimodal Llama model over the coming months, but not in the EU due to the unpredictable nature of the European regulatory environment," Meta said in a statement to Axios.

• Apple similarly said last month that it won't release its Apple Intelligence features in Europe because of regulatory concerns.
• The Irish Data Protection Commission, Meta's lead privacy regulator in Europe, did not immediately respond to a request for comment.

Driving the news:

Meta plans to incorporate the new multimodal models, which are able to reason across video, audio, images and text, in a wide range of products, including smartphones and its Meta Ray-Ban smart glasses.

• Meta says its decision also means that European companies will not be able to use the multimodal models even though they are being released under an open license.
• It could also prevent companies outside of the EU from offering products and services in Europe that make use of the new multimodal models.
• The company is also planning to release a larger, text-only version of its Llama 3 model soon. That will be made available for customers and companies in the EU, Meta said.

Between the lines:

Meta's issue isn't with the still-being-finalized AI Act, but rather with how it can train models using data from European customers while complying with GDPR — the EU's existing data protection law.

• Meta announced in May that it planned to use publicly available posts from Facebook and Instagram users to train future models. Meta said it sent more than 2 billion notifications to users in the EU, offering a means for opting out, with training set to begin in June.
• Meta says it briefed EU regulators months in advance of that public announcement and received only minimal feedback, which it says it addressed.

In June — after announcing its plans publicly — Meta was ordered to pause the training on EU data. A couple weeks later it received dozens of questions from data privacy regulators from across the region.

The intrigue:

The United Kingdom has a nearly identical law to GDPR, but Meta says it isn't seeing the same level of regulatory uncertainty and plans to launch its new model for U.K. users.

• A Meta representative told Axios that European regulators are taking much longer to interpret existing law than their counterparts in other regions.

The big picture:

Meta's move highlights a growing conflict between the U.S.-based tech giants and European regulators.

• Tensions are not new, as the EU has long been seen as far tighter in its regulation of both privacy and antitrust matters.
• Tech companies, meanwhile, argues that those regulations hurt both consumers and the competitiveness of European companies.

What they're saying:

A Meta representative told Axios that training on European data is key to ensuring its products properly reflect the terminology and culture of the region.

• Meta has said that competitors such as Google and OpenAI are already training on European data.