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Chinese artificial intelligence startup DeepSeek is under formal investigation by Italy's antitrust regulator, AGCM, over allegations that it failed to adequately warn users about the potential for its AI system to generate false, misleading, or invented information—commonly referred to as "hallucinations" in AI-generated content.
The probe was announced on June 16, 2025, and marks the latest in a series of regulatory actions against the company in Italy.
Failure to warn users: The Italian regulator asserts that DeepSeek did not provide users with sufficiently clear, immediate, and intelligible warnings about the risks of receiving inaccurate or fabricated information from its AI platform.
Consumer protection concerns: The investigation is grounded in consumer rights, with authorities emphasizing the importance of transparency and user awareness when interacting with AI systems.
Previous privacy issues: Earlier in February 2025, Italy’s data protection authority ordered DeepSeek to block access to its chatbot after the company failed to address concerns related to its privacy policies and data processing practices.
The AGCM has not yet disclosed details regarding potential penalties or the timeline for the investigation.
DeepSeek has not issued a public response to the allegations or to requests for comment from the media as of the latest reports.
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