Germany tells Apple, Google to block DeepSeek as the Chinese AI app faces rising pressure in Europe

Germany's data protection agency has raised alarms regarding DeepSeek, an AI application, alleging that it unlawfully transmits user data to China. Meike Kamp, the data protection commissioner for Berlin, issued a statement on Friday indicating that the transfer of data from German users to China violates legal standards. The situation is complicated by the fact that there appears to be no straightforward method to communicate with DeepSeek. Efforts by CNBC to contact the company's privacy team have yet to yield results. DeepSeek, a Chinese firm, has garnered attention this year for launching an AI model boasting significant cost advantages over its competitors by utilizing less sophisticated Nvidia chips. The company has also developed a globally popular chatbot AI app that has faced increasing scrutiny. Experts suggest that if Germany's case against DeepSeek progresses, it could potentially result in a ban across the European Union. According to Matt Holman, a specialist in AI and data privacy law at Cripps, a collective decision among EU regulators would be necessary before such a significant measure could be implemented. Commissioner Kamp expressed concerns that DeepSeek has failed to adequately assure her office that the data of German users would be protected in China at a level equivalent to that mandated by European Union laws. She highlighted that Chinese authorities have broad access rights to personal data held by Chinese companies. Under the EU's General Data Protection Regulation (GDPR), companies are prohibited from transferring data outside the EU unless stringent protections are in place. Kamp's office has informed Apple and Google of these alleged violations and anticipates a prompt evaluation from the tech giants regarding the potential removal of DeepSeek from their app stores. The response from both companies remains uncertain, as inquiries from CNBC have not yet been answered. Should Apple and Google decide to remove DeepSeek, it could effectively lead to an EU-wide ban on the app, as noted by Holman. He emphasized that the repercussions for DeepSeek could be severe, limiting access to German user data and possibly extending to the rest of the EU if other regulators follow suit. This scenario could significantly impact DeepSeek's operations in both EU and UK markets. This is not DeepSeek's first regulatory challenge in Europe; earlier this year, Italian authorities mandated the app's removal in their country, while Irish regulators sought clarification on its data handling practices.