Data Protection, or a Smokescreen
The Berlin Commissioner for Data Protection recently asked Apple and Google to block Chinese AI startup DeepSeek from Germany's app stores, citing concerns about data protection, despite the lack of substantial evidence. The fallout surrounding the request could have stark implications for DeepSeek.
DeepSeek has caused a sensation in the global tech community since January this year, as it developed an open-sourced, low cost AI model with outstanding capabilities, which rivals U.S. competitors such as ChatGPT. DeepSeek enables AI developers with limited resources to participate in AI model research, allowing researchers worldwide to focus more on innovation and optimization. In a way, DeepSeek has broken the monopoly of U.S. AI companies and become the top app on Apple's and Google's app stores for some time.
According to a press release, the commissioner explained that DeepSeek "processes extensive personal data of users, including all text entries, chat histories, and uploaded files, as well as information about location, devices used, and networks," and transfers the data to China, which is "unlawful" as per the European General Data Protection Regulation (GDPR). The GDPR, which came into effect in May 2018 as a data privacy and security framework, is now becoming a frontline of Europe's AI regulations.
However, the collected data is essential for DeepSeek to provide its services and is collected with the prior consent of its users. The double standard lies in the fact that some AI models developed by U.S. companies collect and transfer data, yet have not been banned from app stores by the Commissioner. Meanwhile, DeepSeek has not been able to convince the commissioner that the "data of German users is protected in China at a level equivalent to that of the European Union."
Currently, the commissioner, who as a local authority can only notify the app stores' operators, said she collaborated with the German Federal Network Agency, which is responsible for enforcing the Digital Services Act in Germany, to take measures. If Apple and Google remove DeepSeek from their app stores, this would trigger an EU-wide ban. This will not only harm the legitimate interests of DeepSeek, but also set a concerning precedent for other international AI companies.
Germany's move is not just a restriction, but rather a signal that the GDPR is now being enforced not only on European companies but also on foreign AI companies operating in the open market, the Euro Weekly News said.
Europe risks isolating itself from the AI revolution by prioritizing protectionism over progress, ultimately leaving Europe further behind in the global AI race. Data protection authorities, empowered by EU regulations, have often been labeled as "obstacles to innovation." Excessive regulatory interference, especially when driven by geopolitical biases rather than objective legal standards, creates an unpredictable business environment.
DeepSeek's open-source has brought tangible benefits to global AI development. It could have been an alternative for Europe to reduce reliance on U.S. technology, fostering homegrown innovation and even serving as a strategic bargaining chip. Unfortunately, some choose to feign ignorance. But the biggest loser would be Europe itself.