Meta pauses plans to train AI using European users' data

>This is a step backwards for European innovation, competition in AI development and further delays bringing the benefits of AI to people in Europe

How would be using European users' data to train an AI a step forward for European innovation in AI when we're talking about Meta, which is an american company? Also I don't think that europeans are mad that they don't get these AI "features" that Meta tries to push, they only push to the degrading quality of facebook/instagram that were already pretty much dead.