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Monday, March 27, 2023

China fines Didi Global $1.2 billion for ‘serious’ violations of data protection laws

China’s cybersecurity regulator said on Thursday it has fined Didi Global Inc. But a disappointment cast.

China’s Cyberspace Administration (CAC) said its investigation found Didi had illegally collected millions of user information over a seven-year period.
June 2015, and carried out data processing activities that seriously affected national security.

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In an unusual move, CAC said it had fined the company’s founder and chief executive Cheng Wei and chairman Jean Liu 1 million yuan each.

“Violation of laws and rules by Didi is serious and should be punished severely,” it said.

Didi said in a statement on her Weibo account that she has accepted the CAC’s decision and will conduct extensive self-examination and correction.

Didi withdrew from CAC when it went ahead with its US Initial Public Offering (IPO), though the regulator urged the company to hold it during its cyber security review.
Its data practices were conducted, sources have told Reuters.

The CAC announced its investigation on June 30, 2021, soon after the company was listed. It also ordered the App Store to remove 25 mobile apps operated by Didi and asked the company to shut down.
Registering new users citing national security and public interest.

The regulator did not specify in its Thursday statement whether it would allow the app to return to the App Store or allow new user registrations.

Didi previously said it would have to apply for the apps to be reinstalled, and three sources told Reuters the company had updated the apps to ensure they were compliant once.
Relaunch was allowed.

Didi did not immediately respond to a request for comment on the apps.

The sanctions have hit Didi badly, eroding its dominance and allowing rival ride-hailing services run by automakers Geely and SAIC Motor Corp Ltd to gain market share.

In December, the company announced it would be delisted from the New York Stock Exchange, and last month secured its shareholders’ approval for the plan.

Didi’s shares soared in the IPO, giving the company a valuation of $80 billion and marking the largest US listing by a Chinese firm since 2014. But by the time of its delisting, its shares had fallen more than 80 percent in value.

Read more: China adds foreign IPO rules for firms with large user data

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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