China takes Didi off app stores two days after Beijing announces cybersecurity review
- The Cyberspace Administration of China said the company had seriously violated data and privacy laws
- Recent moves by cyberspace administration comes hot on the heels of mega IPO in the US and as Beijing ups regulatory scrutiny of Big Tech
The Cyberspace Administration of China (CAC) said in a short statement on Sunday that Didi’s app, often referred to as the Uber of China, has seriously violated the country’s laws and regulations through the improper collection and usage of user information.
As such, the agency has told China’s app stores to remove the app indefinitely, one of the harshest punishments for an internet company. It has also ordered Didi to take corrective measures and to comply with regulations, a hint that it could be restored to app stores in the future.
The punishment comes after the cyberspace security review office, an obscure unit of the powerful administration, announced a review into Didi on Friday, saying it had stopped Didi from registering new users, which was announced the same week of Didi’s IPO on the New York Stock Exchange.
The ride-hailing firm, which trades in New York as Didi Global Inc, raised US$4.44 billion by selling 316.8 million American depositary shares at US$14 each. They started trading on June 30, rising to as high as US$18.01 and fell on Friday to US$15.53, after news about the regulatory review.
