Didi application suspended in China for data protection


A trader works during the IPO of Chinese rideshare company Didi Global Inc on the New York Stock Exchange (NYSE) floor in New York, United States, June 30, 2021.

Brendan McDermid | Reuters

China’s cyberspace administration said on Sunday it had ordered smartphone app stores to stop offering the app from ridesharing company Didi Global Inc after discovering that Didi illegally collected users’ personal data.

The Chinese Cyberspace Administration (CAC) said on its social media feed that it had ordered Didi to make changes to comply with Chinese data protection rules. He did not specify the nature of Didi’s violation.

Didi responded by saying that he had stopped registering new users and would remove his app from the app stores. He said he would make changes to comply with the rules and protect user rights.

Didi debuted on the New York Stock Exchange on Wednesday following a $ 4.4 billion initial public offering (IPO).

Didi was valued at $ 67.5 billion at the IPO, well below the expected $ 100 billion that potential investors had resisted.

Redex Research director Kirk Boodry, who posts on Smartkarma, said the ACC decision seemed aggressive, but Didi had been banned from adding new users anyway during a review of his cybersecurity.

“This indicates that the process might take a while, but they have a large installed base, so the short-term impact (is) likely to be mitigated for now.”

Didi’s app still worked in China for people who had already downloaded it. On average, it offers more than 20 million trips in China every day.

The ACC on Friday announced an investigation into Didi to protect “national security and the public interest,” causing its share price to fall 5.3% to $ 15.53.

The stock was sold for $ 14 during the IPO – the top of the reported range.

Chinese regulators have tightened data collection rules for big tech companies in recent years.

Didi, which provides services in China and more than 15 other markets, collects large amounts of real-time mobility data every day. It uses some of the data for autonomous driving technologies and traffic analysis.

Founded by Will Cheng in 2012, the company has already been the subject of regulatory investigations in China over safety and its operating license.

Didi had set out the relevant Chinese regulations in its IPO prospectus and said, “We follow strict procedures for collecting, transmitting, storing and using user data in accordance with our security and privacy policies. Datas.


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