Apple, Google Warned To Remove Deepseek From App Stores In Germany

Apple Inc. (AAPL) and Alphabet Inc. (GOOGL), the parent company of Android, are reportedly facing pressure from German authorities over hosting the Chinese artificial intelligence app, DeepSeek, allegedly violating European privacy laws.

A Bloomberg report stated that the data protection commissioner for Berlin, Meike Kamp, formally alerted both tech giants that DeepSeek should be considered unlawful in Germany due to concerns over data exposure to Chinese state authorities and thus, removed from their respective App Stores.

Despite the news, both Apple and Alphabet's stocks inched 0.4% higher in Friday's premarket session.

Kamp cited serious concerns about the transfer of user information to China without adequate legal safeguards for German citizens, which are standard within the European Union (EU).

Kamp said that DeepSeek failed to respond to an earlier warning issued in May, which had urged the app to either implement protective measures for user data or remove itself from app marketplaces accessible in Germany. 

After the company ignored that request, Kamp moved to involve platform providers instead. 

She emphasized that Chinese regulations provide authorities there with broad access to personal information, and users of the app have no effective legal recourse if their data is mishandled.

Now, both Apple and Google must decide whether to keep the app accessible in Germany or comply with the commissioner's notice. 

Although authorities had the option to levy fines against DeepSeek, Kamp explained that such penalties would be meaningless since they cannot be enforced outside the EU, particularly in China.

DeepSeek rose to international attention in January by launching a low-cost AI model it claims can compete with top-tier systems like OpenAI's ChatGPT.

A Reuters report said that Italian regulators had already banned the app earlier this year, citing privacy worries, while the Netherlands prohibited its use on official devices. 

In the U.S., lawmakers are drafting legislation to bar federal agencies from deploying AI models created by Chinese developers.

On Stocktwits, retail sentiment around Apple remained in 'bearish' territory while that of Alphabet stayed in 'bullish' territory.

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