Just a few days after the car-hailing giant, the Chinese cybersecurity regulator has ordered the removal of Didi from domestic app stores. Raised $4.4 billion The largest public listing this year.
China’s National Internet Information Office stated on Sunday evening that Didi’s application had “serious violations of the law concerning the collection and use of personal information”. Open a cyber security investigation Enter Didi. On Friday, CAC asked Didi to stop registering new users.
Last week, Didi conducted an initial public offering in New York — priced at $14 per share — without a press conference, social media promotion or bell ringing ceremony after the hurried roadshow.
Didi has more than 377 million users and 13 million drivers in China every year. The company has a lot of data, from the addresses users frequently use to their phone contacts and recordings of the car, which it began to collect after the passenger murder in 2018.
Didi said that it will “resolutely implement” the requirements of relevant departments, and will remove the application “for rectification.”
“We sincerely thank the relevant departments for guiding Didi to investigate risks, and we will make rectifications seriously,” said Didi.
The company added that users who have downloaded the app will continue to use the app, and passenger travel and driver orders will not be affected.
On Friday, after announcing a cybersecurity review, Didi’s share price fell 11% at the opening in New York, then stabilized, closing down 5.3% at $15.52.
The speed at which regulators announce their review decisions and announce penalties over the weekend is unprecedented in China’s one-year-old cyber security review system.
The Office of the Cyberspace Administration of China issued an announcement on Sunday stating that it had taken action “based on the complaint and after inspection and verification”, but did not specify any problems with Didi’s data security measures or how long these problems existed.
Additional reporting by Liu Nian