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European Regulators Investigate DeepSeek – GovInfoSecurity

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In a recent development that has sparked privacy concerns, the Italian data regulator has initiated an inquiry into the data storage and processing practices of the Chinese generative model, DeepSeek. This move comes on the heels of the public debut of DeepSeek’s R1 reasoning model on Friday.

The data protection authority, known as Garante, has taken action by sending letters to Hangzhou-based DeepSeek and Beijing-based DeepSeek Artificial Intelligence, the companies behind the large language model. TechCrunch reported that the Irish Data Protection Commission has also requested information regarding how DeepSeek processes the data of Irish users.

The introduction of the R1 model last Friday has caused a crisis of confidence in the U.S. AI industry, leading investors to drive down the prices of tech companies. Despite soaring consumer interest that propelled DeepSeek to the top of the Apple App store, American companies are now questioning the authenticity of the low-cost AI breakthrough claimed by DeepSeek.

Garante has raised concerns about the potential high risk for the data of millions of people in Italy, including how personal data is collected, the sources of data, the purposes of data processing, the legal basis of processing, and the location of data servers. As a result of these concerns, DeepSeek has been given a deadline of 20 days to respond to the regulatory inquiries. Reuters reported that the DeepSeek app is no longer available in the Apple and Google app stores in Italy.

The probes launched by Garante were prompted by a complaint from Euroconsumers, a coalition of five national consumer organizations. The complaint highlights discrepancies in DeepSeek’s privacy policy, alleging illegal transfers of user data to servers in China. This has raised red flags due to the vulnerabilities associated with commercial data flows involving European residents and the lack of clarity around DeepSeek’s data usage practices.

The European Commission is now examining the legal frameworks governing commercial data flows with China. Additionally, DeepSeek’s absence of a physical presence in Europe raises questions about the company’s compliance with the General Data Protection Regulation (GDPR), Europe’s privacy law. Theodore Christakis, a professor of European and digital law, emphasized the importance of robust data protection practices to avoid a potential GDPR compliance crisis for DeepSeek.

Amidst these developments, a European Commission spokesperson reaffirmed the commitment to defending citizens’ privacy rights. Thomas Regnier stated that services offered in the EU must adhere to privacy requirements, signaling a strong stance on data protection within the region.

As the investigation unfolds, industry experts and regulators are closely monitoring DeepSeek’s data practices to ensure that innovation does not compromise privacy and regulatory responsibilities. It remains to be seen how DeepSeek will address the concerns raised by authorities and consumer organizations as the privacy debate surrounding data storage in China continues to evolve.

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