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Policy, International, Artificial Intelligence

Italy’s Data Regulator Probes DeepSeek Over Data Protection Practices

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Italy’s data protection authority, also known as the Garante, has launched an official inquiry into the Chinese artificial intelligence (AI) startup DeepSeek regarding its handling of personal data. This move underscores growing regulatory scrutiny over AI models and their data privacy practices, particularly in Europe, where stringent privacy laws govern digital platforms. The Garante issued a statement on Tuesday, demanding that DeepSeek clarify several critical aspects of its data collection and storage practices. Among the key questions raised were:

  • What types of personal data are collected?
  • What are the sources of this data?
  • For what purposes is the data used?
  • On what legal basis does DeepSeek process this information?
  • Is any of the collected data stored in China?

DeepSeek and its affiliated companies have been given 20 days to provide the requested details. This represents one of the first regulatory actions specifically targeting the Chinese AI firm, which has gained attention due to its rapid rise in the global AI landscape.

DeepSeek’s Sudden Rise Sparks Regulatory and Market Concerns

DeepSeek’s AI assistant has quickly positioned itself as a low-cost alternative to leading U.S.-based AI models such as OpenAI’s ChatGPT and Google’s Gemini. The platform gained significant traction after overtaking ChatGPT as the most downloaded AI app on Apple’s App Store in the U.S. This surge in popularity triggered a massive selloff in the tech stock market earlier this week, with investors reacting to concerns that DeepSeek’s success could disrupt the dominance of American AI firms.

DeepSeek’s rising influence has not gone unnoticed in the United States. A White House press secretary stated that the U.S. government is actively evaluating the national security implications of the AI platform. The involvement of Chinese companies in AI development has long been a contentious issue, with concerns about data security, intellectual property risks, and potential misuse of AI technologies. The U.S. has previously imposed restrictions on AI chip exports to China, citing national security risks. The ongoing investigation into DeepSeek may further escalate tensions between the two global tech superpowers.

Italy’s History of Strict AI Regulations

The Garante is known for being one of Europe’s most proactive AI watchdogs. In 2023, it made headlines by temporarily banning OpenAI’s ChatGPT due to concerns over potential breaches of the European Union’s General Data Protection Regulation (GDPR). The ban was later lifted after OpenAI took corrective measures to align with EU privacy standards. The European Union has been at the forefront of AI regulation, with the AI Act set to establish strict compliance requirements for AI companies operating within its jurisdiction. Italy’s current scrutiny of DeepSeek suggests that European regulators will not hesitate to enforce compliance mandates on non-EU tech companies seeking to expand their influence in European markets.

As AI continues to advance, regulatory oversight is becoming increasingly essential to ensure consumer data protection and ethical AI development. The scrutiny over DeepSeek is not an isolated event; it reflects a global movement toward greater accountability in AI governance.

Key Takeaways:

  • Italy’s data watchdog has launched an investigation into DeepSeek’s data privacy policies.
  • DeepSeek must respond within 20 days to clarify its data collection and storage practices.
  • The White House is also examining DeepSeek for national security risks.
  • Italy has a history of strict AI regulations, including a previous ChatGPT ban.
  • The case could set a precedent for how Chinese AI firms operate in Western markets.

The outcome of this investigation could impact how DeepSeek and other AI startups operate globally. If found non-compliant, DeepSeek could face fines, operational restrictions, or even a ban from operating in certain regions. As AI continues to transform industries, ensuring transparency and security will remain a top priority for governments and regulators worldwide.