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A New AI Flashpoint Between Europe and China
The AI race has gone global, but not without controversy. DeepSeek AI, a Chinese-developed chatbot app with more than 50 million downloads, now faces a major regulatory battle in Germany. The Berlin Commissioner for Data Protection has called on Apple and Google to remove the app from their platforms, citing serious violations of the European Union’s General Data Protection Regulation (GDPR). This clash underscores growing concerns over how data from European users is being handled by foreign companies ā especially those based in countries with lower privacy standards like China.
DeepSeek’s Global Rise and Regulatory Crisis
DeepSeek AI, created by Hangzhou DeepSeek Artificial Intelligence from Beijing, quickly climbed to global recognition after launching its third-generation chatbot in early 2025. Its sophisticated features and language capabilities earned it millions of downloads across Android and iOS devices. But its meteoric rise has been overshadowed by serious privacy and cybersecurity concerns. The Berlin Commissioner, Meike Kamp, alleges that DeepSeek unlawfully collects personal data from German users and transfers it to servers in China, a nation with historically lenient data privacy frameworks and a track record of excessive government surveillance.
Under 46(1) of the GDPR, any data transferred from EU citizens must meet the regionās stringent privacy standards. However, Kamp argues that DeepSeek has failed to implement sufficient legal protections. Adding to the issue, the company does not have a legal branch within the European Union, which makes enforcement challenging. Nonetheless, the appās availability in German-language stores and its functionality in German make it subject to GDPR rules.
On May 6, Kamp requested DeepSeek to voluntarily pull the app from German app stores. The company declined. Consequently, Berlin authorities escalated the issue under 16 of the Digital Services Act (DSA), which enables them to report illegal digital content to hosting platforms. Now the decision lies with Apple and Google ā will they remove DeepSeek, or will this turn into a prolonged legal standoff?
What adds gravity to this case is the involvement of other regional regulators from Baden-WĆ¼rttemberg, Rhineland-Palatinate, Bremen, and the German Federal Network Agency. While not a national-level government action, the coordinated effort signals a broader regulatory consensus within Germany.
This dispute reflects not just a legal battle, but also the deepening concerns over data sovereignty, AI ethics, and the potential national security risks that come with letting foreign entities handle sensitive personal data.
What Undercode Say:
Tensions Between GDPR and Global AI Ambitions
The case of DeepSeek AI serves as a textbook example of regulatory friction in the digital age. While AI platforms are born to scale globally, data protection laws like GDPR are designed to create strong local safeguards. This contradiction creates inevitable tension when foreign tech firms expand into Europe without meeting its rigorous legal requirements.
DeepSeekās core issue lies in its cross-border data handling. While its app may appear harmless and productive on the surface, its backend behavior ā transmitting user data to China ā breaches the GDPRās core principles. Itās not simply about where the data goes, but whether adequate safeguards are in place once it arrives. Chinaās legal environment allows extensive governmental access to private data, which disqualifies it as a āsafeā data destination under EU rules.
Absence of Local Representation Magnifies Risk
DeepSeekās failure to establish an EU-based legal entity makes compliance even harder. Without a legal branch in the bloc, thereās no entity accountable under EU jurisdiction. This is precisely why Berlin is now leaning on Apple and Google to enforce removal. The responsibility to act is shifting to platform providers who host these apps ā turning them into regulators by proxy.
DSA Powers Come Into Play
The invocation of 16 of the Digital Services Act is another notable development. Itās a relatively new legal lever, designed to ensure that illegal content ā including apps violating privacy laws ā can be swiftly reported and removed. This shows a growing willingness from European regulators to use all available tools, even against powerful global companies.
Tech Giants Caught in the Middle
Apple and Google now find themselves in a tough spot. On one hand, removing the app sets a precedent for compliance with local data regulations. On the other, they risk alienating a key player in the rapidly growing Chinese AI ecosystem. Their decision will ripple beyond Germany, influencing how other EU countries deal with similar apps from non-compliant jurisdictions.
The Bigger Picture: Tech Sovereignty and National Security
Beneath the GDPR and DSA frameworks lies a deeper issue ā tech sovereignty. As Europe becomes more cautious about foreign data access, especially from countries with different political systems, regulators are likely to act aggressively. The DeepSeek case might be just the beginning of a wider crackdown on AI apps that fail to meet EU data standards.
A Warning to AI Startups
This situation sends a clear warning to other emerging AI platforms: popularity does not equal immunity. Compliance is no longer optional in Europe. Whether you’re a Silicon Valley startup or a Chinese AI giant, entering the European market without adhering to GDPR is a legal risk you can’t afford.
š Fact Checker Results:
ā
DeepSeek is developed by a Chinese company with no legal branch in the EU
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The app processes data on Chinese servers, violating GDPRās data protection requirements
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Berlin invoked 16 of the DSA to request removal from app stores
š Prediction:
Apple and Google are likely to remove DeepSeek AI from their German app stores within the next few weeks to avoid regulatory penalties. This may trigger similar actions across the EU, setting a precedent for stricter AI app scrutiny. Expect a wave of data compliance overhauls from global AI companies targeting the European market.
References:
Reported By: www.bleepingcomputer.com
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