This article critically examines the political function of transparency discourse within the EU AI Act. Building upon the early Frankfurt school of critical theory, the article demonstrates how the market-friendly notion of transparency reinforces relations of power and domination, while side-lining ethical concerns and citizens’ welfare. Through critical discourse analysis, I argue that transparency discourse within the EU AI Act serves a dual purpose: ideological work and policy legitimation. It prioritizes AI industry and big tech interests over human rights concerns, places market efficiency and profit above citizens’ rights, and enables a technocratic approach that undermines the core values of the EU charter. By reinforcing hegemonic market orientation, prioritizing experts and AI providers, and hindering broader public participation, the concept of transparency oversimplifies complex ethical issues and obscures underlying normative tensions. The article contributes to critical studies of algorithmic governance by challenging the taken-for-granted assumptions surrounding transparency in EU regulation discourse.