In China, Didi Global fined over $1 billion for violating data security laws: Report

In a recent development, China's cybersecurity regulator reportedly imposed a fine on the ride-hailing giant 'Didi Global Inc.', bringing an end to a year-long investigation that had barred the company from adding new customers. After concluding that Didi had breached the country's network security law, data security law, and personal information protection law, the Cyberspace Administration of China slapped a fine of 8.026 billion yuan ($1.19 billion) on the company. In addition, two Didi executives were also fined 1 million yuan each by the administration, CNBC reported. 

Meanwhile, the ride-hailing service acknowledged that it had accepted the cybersecurity authorities' ruling. However, whether the company will soon be allowed to add new users or reinstate its presence on Chinese app stores was not specified in the cybersecurity authority's notice regarding the fine. According to reports, the probe was first made public in 2021, after Didi Global's Initial Public Offering (IPO) on the New York Stock Exchange (NYSE). The company had also drawn criticism for allegedly moving forward with its IPO despite ongoing regulatory issues about data security.

China's cyber-regulator ordered to remove Didi's 25 apps

Following this, the cab aggregator company, Didi Global Inc., announced that it will withdraw from the NYSE and begin preparations to list in Hong Kong. The ruling Communist Party has been tightening control over China's growing technological firms and data about its people and economy, which the government views as a critical strategic asset.

Earlier in July 2021, Didi's 25 apps were ordered to be deleted from app stores by China's cyber-regulator, citing serious violations of the laws prohibiting the collection of personal data. The 25 apps include ones made just for 'Didi drivers' as well as ones for 'Didi Enterprises.

It is pertinent to mention here that the company was founded as a taxi-hailing app in 2012 and has since grown to include additional ride-hailing services such as private vehicles and buses. It also claims to be funding the development of artificial intelligence, electric vehicles, and other technologies. Notably, Didi's New York Stock offering brought in $4 billion from investors, The Associated Press reported. 

(Image: AP)