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French Privacy Watchdog to Investigate DeepSeek Over AI and Data Protection

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France’s data privacy authority, the CNIL, announced on Thursday that it will question DeepSeek to assess the workings of its AI system and potential privacy risks for users. The Chinese AI startup gained international attention after revealing that training its DeepSeek-V3 model required less than $6 million in Nvidia H800 computing power.

A CNIL spokesperson confirmed that its AI department is currently analyzing DeepSeek’s tool and will engage with the company to understand its system and data protection measures. The French regulator is among the most active in Europe, having previously fined tech giants like Google and Meta for privacy violations.

DeepSeek is also under scrutiny in other parts of Europe. Italy’s data protection authority recently requested details on its handling of personal data, while Ireland’s Data Protection Commission has inquired about data processing practices related to Irish users.

The European Union maintains strict privacy protections under its General Data Protection Regulation (GDPR), widely regarded as one of the world’s most comprehensive data privacy laws. GDPR violations can result in fines of up to 4% of a company’s global revenue. Additionally, new EU AI regulations impose transparency obligations on high-risk AI models, with penalties ranging from 7.5 million euros (or 1.5% of turnover) to 35 million euros (or 7% of global turnover), depending on the severity of violations.

As regulatory scrutiny intensifies, DeepSeek faces mounting pressure to demonstrate compliance with European data protection standards.

 

Lina Khan to Resign from U.S. Federal Trade Commission, Leaving Agency in Limbo

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Lina Khan, the U.S. Federal Trade Commission (FTC) chair under President Joe Biden, announced her resignation on Monday in a memo to staff, marking the end of her tenure as the agency’s chief antitrust enforcer. Khan, known for her aggressive stance on antitrust issues, will depart in the coming weeks, creating a temporary deadlock at the commission.

Key Points:

  • Khan’s Legacy at the FTC: Khan, the youngest person to lead the FTC, has been a fierce advocate for antitrust law enforcement. During her time as chair, she challenged major mergers, including Amazon’s practices and tech giants like Microsoft and Google. Notably, her leadership led to the FTC blocking Kroger’s $25 billion acquisition of Albertsons and the $8.5 billion merger between Tapestry and Capri.
  • Controversial Policies and Legal Challenges: Some of Khan’s initiatives proved contentious. A broad ban on worker noncompete agreements aimed at boosting labor competition was struck down in court. Additionally, her proposed rule requiring subscription services to simplify cancellation processes is facing legal challenges. These policies were opposed by Republicans on the commission, including Commissioner Andrew Ferguson, who became chair when Trump took office.
  • Impact of Khan’s Departure: Khan’s resignation leaves the FTC in a temporary stalemate with a 2-2 split between Democratic and Republican commissioners. However, Republicans will soon hold a majority once Mark Meador, Trump’s nominee, is confirmed by the Senate. Meador, known for his pro-enforcement stance, is expected to influence the commission’s direction.
  • Khan’s Future Plans: As she prepares to leave the FTC, Khan intends to focus on administrative duties such as document retention and records management to comply with legal requirements.

UK Anti-Trust Regulator to Launch Two Investigations Under New Digital Markets Powers

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Britain’s anti-trust regulator, the Competition and Markets Authority (CMA), has announced it will initiate two investigations this month under its newly granted powers aimed at overseeing the country’s largest tech firms. These powers, introduced as part of the UK’s Digital Markets regime, are designed to encourage investment, innovation, and market growth while ensuring fair competition within the digital sector.

Under the new framework, the CMA can designate firms as having “Strategic Market Status” (SMS), which applies to the most dominant tech companies in specific digital activities. The threshold for SMS status is high, meaning only the largest and most influential companies will be subject to such investigations.

In November, the CMA suggested that Apple could be stifling innovation in the smartphone browser market and indicated it might investigate the duopoly of Apple and Google in mobile ecosystems. The new regulatory powers came into effect this month, allowing the CMA to explore these concerns further.

The regulator confirmed it expects to launch two investigations this month, with more details to be provided in due course. A third investigation is slated to begin after approximately six months. Each investigation will have a statutory completion time of nine months.

The CMA’s investigations will likely focus on issues such as preventing dominant players from suppressing smaller competitors by prioritizing their own services, facilitating easier transitions between digital providers while retaining user data, and fostering competition to drive growth.

This move follows increased scrutiny of mergers and acquisitions post-Brexit, with the CMA now playing a more prominent role in regulating the tech sector. Prime Minister Keir Starmer urged the regulator in October to focus more on growth, with the new digital markets regime aimed at boosting the UK’s appeal to tech companies while ensuring consumers have access to competitive options at fair prices.