Italy's data protection authority demands answers from Chinese AI startup DeepSeek on how it handles user data, raising privacy concerns amid growing competition in the AI sector.

Italy’s Data Regulator Investigates DeepSeek's Data Practices


Italy's data protection authority, Garante, has officially launched an inquiry into DeepSeek, the Chinese artificial intelligence startup that has made waves with its AI model. The regulator has requested detailed information from the company about how it handles the personal data of Italians using its app.

In a statement released on Tuesday, Garante stated that it had sent a formal request to DeepSeek to clarify several critical points regarding the app’s data practices. These include what personal data is collected from users, how it is processed, the legal basis for such data processing, and whether the data is stored on servers in China.

Rising Concerns Over Data Storage and Security


The inquiry comes as DeepSeek has emerged as a major challenger to established AI players like OpenAI and Google’s Gemini, unveiling a new AI model that has gained attention for being significantly more cost-effective than its competitors.

However, the app’s sudden rise has raised national security concerns, especially regarding the handling of sensitive personal data. With DeepSeek becoming increasingly popular in Europe, questions have been raised about how the app stores and secures user data, particularly in China, where privacy regulations differ significantly from those in Europe.

In light of these concerns, Italy is the first European country to officially investigate DeepSeek's practices. The company has been given a 20-day deadline to respond, with a final date set for February 17th.

EU Consumer Groups Demand Accountability


European consumer advocacy groups, such as Euroconsumers and Altroconsumo, have previously raised alarms about DeepSeek’s data handling practices. These organizations have argued that the app may be in violation of EU privacy laws, specifically the General Data Protection Regulation (GDPR), which governs how companies collect and store personal data from EU citizens.

The scrutiny surrounding DeepSeek follows a broader trend of European regulators closely monitoring AI companies and their compliance with strict data privacy rules. This is not the first time that an AI company has faced significant legal challenges in Europe. In 2023, Italy's data protection authority temporarily banned ChatGPT over similar concerns regarding privacy violations.

DeepSeek’s Rise Amid Industry Panic

DeepSeek’s rapid rise has caused significant disruption in the tech industry, particularly in the United States, where major tech stocks experienced sharp declines following the app's release. The company's claim of developing an AI tool “at a fraction of the cost of others” has shaken industry giants, leading to widespread uncertainty.

As DeepSeek continues to challenge global AI players, Italy’s data protection authority is now demanding transparency, ensuring that users' rights are protected in accordance with European data privacy laws. With growing scrutiny over Chinese tech companies in Europe, the outcome of this investigation could have wider implications for the future of AI development and data privacy in the region.

A Look Ahead: What’s Next for DeepSeek?


As the investigation unfolds, DeepSeek faces mounting pressure to comply with EU regulations. How the company responds to the Italian regulator’s requests will likely set a precedent for how European authorities handle the growing influence of Chinese AI firms.

In the coming weeks, all eyes will be on DeepSeek to see how it navigates the EU’s data privacy landscape and whether other European countries will follow Italy’s lead in scrutinizing its practices. With the February 17th deadline fast approaching, the outcome of this case could significantly impact the future of AI privacy regulations in Europe.