EU Takes Aim at App Stores Over China’s DeepSeek AI Model

Germany’s regulatory action against China’s DeepSeek AI is a significant test of the EU’s Digital Services Act (DSA), which mandates that major platforms like Apple and Google remove illegal content or risk fines of up to 6% of their global revenue. This approach acknowledges the challenges in directly enforcing laws against Chinese companies in the EU, especially as China’s data privacy laws conflict with European standards. German regulators are holding Apple and Google accountable for DeepSeek’s operations, citing concerns over user rights under Chinese law. DeepSeek has quickly gained over 10 million users, offering competitive AI capabilities at a fraction of the cost of Western alternatives, which complicates enforcement due to its open-source model. As AI regulations evolve, they not only influence market dynamics but also highlight the difficulties regulators face in managing rapid technological advancements, particularly in decentralized environments like open-source architectures.

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