DeepSeek accused of sharing user data with TikTok owner ByteDance

South Korea has accused Chinese AI firm DeepSeek of sharing user data with ByteDance, the China-based parent firm of TikTok.

It comes after the country removed DeepSeek from its local Apple and Google app stores over the weekend because of data privacy concerns.

The Yonhap News Agency said it had been told by the South Korean data protection regulator that it had “confirmed” DeepSeek was “communicating with ByteDance”, however, it has not yet confirmed what data was transferred and to what extent.

According to ByteDance, the link being made between the two companies is because one of the cloud services used by DeepSeek in China is from a firm called Volcano Engine, which is owned by ByteDance, but does not mean it has access to DeepSeek data.

DeepSeek sent shockwaves through the tech sector when it emerged last month, appearing to offer performance on a par with ChatGPT and other US AI giants but having been developed for allegedly a fraction of the cost, wiping billions off the value of tech stocks.

But since then, it has come under intense scrutiny and been the subject of multiple warnings from security services and industry experts over the storing of user data on servers in China, and that said data could be accessed and harnessed by the Chinese government for intelligence or surveillance purposes.

It has led to the app being restricted or banned from government devices in South Korea and a number of other countries just as the app’s popularity exploded, seeing it top download charts in the UK, US and elsewhere.

In its report, Yonhap said the South Korean data protection regulator had sent a formal inquiry to DeepSeek asking for clarification on its data collection and management methods.

In response, it said DeepSeek had acknowledged “shortcomings” in its consideration of South Korean data protection laws and said it would actively work with the regulator on the issue.

Data security concerns have previously been raised about other Chinese firms, most notably TikTok and Huawei.

Critics have argued that a national intelligence law in China can require firms to hand over any information requested of them by the Chinese government.

In the US, where TikTok is on the cusp of a blanket ban unless ByteDance gives up ownership, officials have also claimed that the app’s recommendation algorithm could be used by the Chinese state to spread misinformation and undermine the government.

TikTok has repeatedly denied those accusations.

Following the emergence of DeepSeek, cybersecurity experts have urged the public and businesses to exercise caution before using the AI chatbot.

On Monday, the UK government said it was a “personal choice” for the public over whether they used the app, but said it kept new technologies under constant review as they evolve.