Regulatory capture defines the EU AI Act, as the very companies subject to the rules played a primary role in drafting them. Unlike the reactive nature of GDPR, the AI Act was designed alongside the technology, allowing major players like Microsoft, Google, and Meta to influence risk thresholds and secure lighter regulatory categories for general-purpose models. Lobbying data confirms this imbalance, with industry interests dominating high-level commission meetings. These compliance requirements impose significant overhead that favors established incumbents with existing legal infrastructure, while simultaneously stifling potential future competitors. Consequently, enforcement will likely prioritize small, visible failures over holding frontier model providers accountable, effectively turning the regulation into a barrier to entry that protects the market leaders who helped shape it.
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