China's DeepSeek faces ban in Italy following data security concerns

China's DeepSeek faces ban in Italy following data security concerns

Italy's Data Protection Authority has issued an immediate ban on DeepSeek as they received incomplete responses from the Chinese AI company regarding data storage and security.

DeepSeek banned in Italy
Business Today Desk
  • Jan 31, 2025,
  • Updated Jan 31, 2025, 12:21 PM IST

Italy's Data Protection Authority, known as Garante, has imposed an immediate ban on the Chinese AI application DeepSeek, citing concerns over user data protection, according to a Reuters report. As a result of this, the DeepSeek application is now unavailable on Italian Play Store and App Store.

The Italian regulator  sought detailed information regarding DeepSeek's data collection practices. The authority raised questions about the types of personal data collected, their sources, purposes, legal basis, and whether the data is stored in China. Incomplete responses from DeepSeek's Chinese suppliers prompted the ban and an ongoing investigation. 

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DeepSeek, which recently launched a free, data-efficient AI assistant, had surpassed US rival ChatGPT in downloads from Apple's app store, raising concerns among tech stock investors. It also led to the largest single-day stock decline in US history, as chipmaker NVIDIA lost almost $600 billion in market valuation.

The Italian regulator's action reflects growing apprehension about how personal data collected by AI applications might be utilised by foreign governments. The Italian regulator, Garante, has given DeepSeek 20 days to provide comprehensive information on its data handling practices.

This move aligns with broader European efforts to regulate artificial intelligence and protect user privacy. The European Union's Artificial Intelligence Act, set to take effect soon, mandates that companies eliminate AI systems that violate fundamental rights such as privacy and security. Non-compliance could result in substantial fines, emphasising the EU's commitment to stringent oversight of AI technologies. 

The ban on DeepSeek underscores the increasing scrutiny of AI applications' data practices and the importance of compliance with data protection regulations in Europe.

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