A German data protection watchdog on Friday accused the Chinese artificial intelligence company DeepSeek of illegally sending German user data to China. The organization has called on Google and Apple to consider blocking the DeepSeek service.
DeepSeek made waves globally in January of this year when it launched an artificial intelligence model claiming to use less advanced Nvidia chips, yet costing only a fraction of its competitors. Subsequently, the DeepSeek application surpassed OpenAI’s ChatGPT in downloads on the Apple App Store in the United States, triggering a sell-off in tech stocks.
However, since then, the application has faced strict scrutiny in countries and regions including the United States, Italy, France, the United Kingdom, Germany, South Korea, and Taiwan.
According to CNBC, Meike Kamp, a data protection commissioner based in Berlin, Germany, stated in a release that the transmission of German user data by DeepSeek to China is “illegal.” DeepSeek’s privacy team has yet to respond to CNBC’s request for comment.
Kamp stated, “DeepSeek has not been able to convincingly prove to my agency that the data of German users is protected in China at a level equivalent to that of the EU.”
He added, “The Chinese (CCP) authorities have broad access rights to personal data within the scope of Chinese companies.”
Under the EU’s General Data Protection Regulation (GDPR), companies are prohibited from transferring data to regions outside the EU unless specific protective measures are in place in the receiving country that align with European GDPR requirements.
Data protection commissioners are concerned that Chinese authorities may access German user data transmitted to China by DeepSeek.
Experts cited by CNBC suggest that a ban on DeepSeek’s AI model in Germany could lead to a ban on the application within the EU.
Matt Holman, an artificial intelligence and data professional lawyer at Cripps Law Firm, informed CNBC via email, “This incident is likely to lead to a ban within the EU as the rules applicable in Germany are consistent with those in other regions of the EU and in the UK.”
The data surveillance agency in Berlin announced on Friday that it has notified Apple and Google of DeepSeek’s suspected violations, hoping that these two American tech giants will conduct a “timely review” on whether to remove DeepSeek from their respective app stores. CNBC has reached out to both companies for comments.
Holman of Cripps stated that if Apple and Google remove DeepSeek from their app stores, it would effectively constitute a ban within the EU.
Holman said, “The impact on DeepSeek could be significant, which is not surprising. Access to the data of German citizens will be restricted. If other regulatory authorities follow suit, these restrictions could quickly expand to other regions of the EU, meaning that should Apple and Google remove the application, markets within the EU, including potentially the UK, could face restrictions.”
Since its launch, DeepSeek’s AI model has faced data protection issues in multiple countries. Earlier this year, the Italian data protection authority (Garante) announced a block on DeepSeek due to lack of transparency in the company’s use of personal data. In February, Australia declared a ban on all government devices using DeepSeek products and services, citing security concerns over the AI model introduced by the Chinese startup company.