DeepSeek, a startup from China focusing on artificial intelligence, has recently faced significant regulatory challenges in Italy. Its app has unexpectedly disappeared from both Apple’s App Store and Google Play. This action comes after Italy’s data protection authority, Garante, initiated a formal investigation into how DeepSeek manages and gathers user data. Concerns surrounding data privacy and safety have put the AI firm under a microscope, mirroring similar worries expressed in the United States and Australia.
Italian Authority Demands Clarity on Data Usage
Italy’s privacy regulator has granted DeepSeek and its associated companies a 20-day period to reveal essential information related to their data handling practices. Authorities are requesting specifics about the types of personal data collected, how it is sourced, its intended use, and whether the information is stored on servers located in China. Additionally, they have inquired about how DeepSeek communicates data processing practices to both registered and unregistered users, especially when information is sourced via web scraping techniques.
Privacy Issues Amid Rapid Success
Concerns regarding privacy have escalated following DeepSeek’s rapid ascent. The launch of its AI assistant, which rivals OpenAI’s ChatGPT, saw the app quickly rise to the top of download lists across various nations, causing unease among competitors in the US tech sector. Concurrently, US officials are evaluating possible national security threats linked to the widespread use of a Chinese AI model, with the US Navy specifically cautioning its personnel against using DeepSeek.
Data Transparency Under Fire
Transparency in how data is managed remains a critical point of contention. According to the company’s privacy policy, user data is kept on secure servers in China and might be shared with affiliated organizations and service providers. Despite this, Euroconsumers—a group of European consumer advocates—has raised concerns regarding the sufficiency of these notifications and questioned DeepSeek’s compliance with the European Union’s General Data Protection Regulation (GDPR).
Italy’s examination of DeepSeek is not a new development. Earlier in 2023, the country temporarily prohibited ChatGPT due to worries about user data protection. In response to these issues, OpenAI made several adjustments to its platform, including enhanced transparency about data processing, providing users with opt-out choices, and instituting age verification measures aimed at protecting children under 13. These modifications ultimately led to the reinstatement of the chatbot.
Future Implications for DeepSeek
As DeepSeek continues to expand its presence worldwide, the regulatory hurdles it faces are intensifying. The company is required to provide answers to the Italian regulator by February 17, a deadline that could significantly impact its future operations in the European market. Should authorities determine that privacy laws have been violated, DeepSeek may encounter severe penalties or operational restrictions, potentially setting a precedent for the examination of AI products created outside Western jurisdictions.
