In the illustration in this photo, the DeepSeek logo appears on the European Union flag on the smartphone screen and background.
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One of Germany's data protection watchdogs on Friday said the Deepseek app had illegally sent user data to China to ask Google and apple Consider blocking artificial intelligence services.
In a statement, Berlin's data protection committee member Meike Kamp said it was “illegal” for Deepseek to transfer German user data to China.
There is no easy way to get in touch with DeepSeek. CNBC is contacting Deepseek's privacy team.
This year, Chinese company Deepseek made waves when it launched an AI model that it claimed to have been created at a fraction of the cost of its competitors using more advanced NVIDIA chips.
The company also has its own global chatbot AI app downloaded millions of times, which is scrutinized.
If the German lawsuit against Deepseek goes on, it could lead to a ban on the app across the European Union, some experts say.
“There is certainly a possibility that this case could lead to a ban on the EU as a whole, because the rules that apply to Germany are the same in the EU and elsewhere in the UK, so AI expert and data lawyer Matt Holman told CNBC in an email. But there are a few steps before this becomes a reality.
What is the German issue with Deepseek?
“Deepseek has not been able to convincingly demonstrate to my authority that German users' data is protected in China at a level equal to the European Union,” says German Kamp, a translation by CNBC. “Chinese authorities have extensive access to personal data within the reach of Chinese companies' influence.”
Under the European Union's general data protection regulations (block's huge data protection law), businesses are prohibited from sending data outside the region unless certain safeguards are in place in the country of arrival. These safeguards must meet European GDPR requirements.
In short, Berlin's data protection committee is concerned that Chinese authorities will have access to German user data sent to China from Deepseek.
What is the next step?
Berlin's Data Watchdog on Friday notified Apple and Google of allegedly breached Deepseek and said it hopes the US tech giant will perform a “timely review” on whether it will ban the app from its respective app stores.
It is unclear whether Google and Apple will follow suit. CNBC reached out to both companies for comment.
Crips Holman said there is a need for a consensus among the block that a ban is possible across the EU and that this will be an appropriate step among the regulators of the bloc.
If Apple and Google remove DeepSeek from the app store, this would effectively be an EU-wide ban, Holman said.
“The impact on Deepseek can, of course, be very strict. Access to data for German citizens will be reduced. In a short order, if other national regulators mean suits that mean the EU, this could extend to the rest of the EU.
This is not Deepseek's first break-in with European regulators. In February, Italian data protection authorities ordered Deepseek to block domestic apps. Meanwhile, in January, Irish authorities asked Deepseek for information on data processing.
