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Daily Security Review

Berlin Regulator Targets DeepSeek AI Over Data Transfers to China

01 Jul 2025

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Germany’s battle over digital sovereignty and data privacy has intensified, with the Berlin Commissioner for Data Protection formally requesting that Google and Apple remove the DeepSeek AI application from their app stores. The move stems from allegations that DeepSeek, a Chinese-developed generative AI platform, violates the EU’s General Data Protection Regulation (GDPR) by unlawfully collecting data from German users and transferring it to Chinese servers—beyond the EU’s legal jurisdiction and outside GDPR’s protections.This episode explores the broader implications of this takedown request under Article 16 of the EU Digital Services Act (DSA) and unpacks what this means for AI platforms, app store governance, and global data flows.We go beyond the headlines to examine:How GDPR governs cross-border data transfers, and why transfers to China often fall short of EU legal adequacy requirements.The clash of data philosophies between the EU’s GDPR and China’s PIPL, revealing a deeper regulatory rift grounded in individual rights versus state sovereignty.Why DeepSeek’s refusal to comply voluntarily triggered enforcement escalation, and how this signals a tougher European stance on foreign AI apps operating in the single market.The role of the Digital Services Act (DSA) in compelling app platforms like Google and Apple to act on national regulatory concerns—even when raised by a single EU state authority.The risk of fragmenting global data flows and creating incompatible governance zones, hindering both trade and innovation.What this action reveals about the “Brussels Effect”—the EU’s growing influence on global digital regulation—and how that’s reshaping how tech firms build and deploy AI.We also situate the DeepSeek case within broader global dynamics, including:Rising tensions around AI regulation, national security, and data localizationHow multinational firms struggle to comply with competing privacy frameworksThe environmental and economic costs of fragmented data governanceRegulatory uncertainty around AI tools' collection, training data use, and transparencyThis is a must-listen episode for privacy professionals, compliance officers, digital policymakers, AI developers, and global tech executives navigating today’s increasingly territorial data landscape.

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