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31 January 2025

Italy Blocks Chinese AI App DeepSeek Over Data Privacy Concerns

The Italian data protection authority intervenes to protect users amid global scrutiny of the controversial AI application.

Italy's data protection authority announced on January 30, 2025, the immediate blocking of access to the Chinese AI application DeepSeek. This action was taken to safeguard users' data amid growing concerns about the application’s data handling practices.

The authority, known as Garante per la protezione dei dati personali (GPDP), expressed significant dissatisfaction with the responses received from the companies behind DeepSeek, Hangzhou DeepSeek Artificial Intelligence and Beijing DeepSeek Artificial Intelligence. The GPDP had earlier requested detailed information about the personal data collected by DeepSeek, its storage, and user notifications. It wanted clarity on multiple aspects, including the type of data collected, the sources of this data, and why it was being gathered.

Following the initial inquiry, the companies claimed they did not operate within Italian jurisdiction, asserting European data protection laws did not apply to them. The GPDP firmly countered this assertion, stating, “Contrary to the authority’s findings, the companies declared they do not operate in Italy, and European legislation does not apply to them.” With millions of downloads across the globe since its launch, this claim may raise even more eyebrows as the app clearly had many Italian users.

DeepSeek, developed by Liang Wenfeng, has rapidly gained notoriety on international tech markets, recently overtaking U.S. rival ChatGPT to become the most downloaded free app on the Apple App Store. This development caused considerable alarm among investors, particularly following DeepSeek’s claims of using significantly less data compared to existing services.

During the inquiry, the GPDP identified potential risks to user data, underscoring its role as one of Europe’s most vigilant authorities concerning AI technologies. The authority placed emphasis on the need for comprehensive and transparent answers, stating, "The authority wanted to know what personal data is collected, from which sources, for what purposes, on what legal basis and whether it is stored in China.”

Despite the popular acclaim, the application faced criticisms for its handling of sensitive topics, with allegations concerning its censorship practices, particularly around politically charged content deemed unwelcome by Chinese authorities. Reports suggest it suppresses inquiries related to sensitive historical events, including the 1989 Tiananmen Square massacre, which reflects broader concerns over personal data and information freedom.

The regulatory action taken by Italy came shortly after the authority's request for information, indicating the urgency attributed to the investigation. It also stated, "The restriction measure, intended to protect the data of Italian users, follows the communication from the companies deemed completely insufficient." This immediate enforcement exemplifies the GPDP’s commitment to user data protection.

Since the ban, DeepSeek has become embroiled in global scrutiny, as other countries and organizations monitor its operations for compliance with privacy regulations. Italy's move has sparked increasing attention and inquiries from other jurisdictions, reflecting rising concerns worldwide about the potential exploitation of personal data by AI technologies.

Meanwhile, the situation raises pivotal questions surrounding privacy rights, regulatory oversight, and the competitive dynamics of generative AI technologies. It highlights the delicate balance between innovation and ethical responsibility for developers and tech companies operating across borders.

With DeepSeek's founder Liang Wenfeng having established the startup just last year, the rapid ascension of the AI assistant and its ensuing challenges exemplifies the fast-paced developments within the AI sector. The app’s open-source model and its less intensive data requirements have made it attractive to many users and developers alike. Yet, its future now hangs uncertain as privacy issues overshadow these attractive features.

Italy’s action against DeepSeek echoes similar moves seen previously, including the brief ban on Microsoft-backed ChatGPT due to suspected EU data protection violations. This underlines the increasing vigilance from European regulators intent on ensuring user privacy as AI technologies evolve.

Going forward, there will be greater scrutiny on how companies like DeepSeek address concerns not only from governmental bodies but also from users seeking assurance about their personal data. The future viability of generative AI applications may rely significantly on their ability to demonstrate transparency and adherence to strict data protection laws.

DeepSeek's case highlights the complexity of operating AI technologies within the global regulatory framework, paving the way for necessary discussions about privacy rights, data protection measures, and ethical AI deployment practices worldwide.