DiDi Banned in China for Data Abuse
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DiDi Banned in China for Data Abuse

By IndraStra Global News Team

DiDi Banned in China for Data Abuse

On July 4, 2021, the Cyberspace Administration of China (CAC, 国家互联网信息办公室) said on its social media feed that it had ordered ride-hailing firm DiDi Chuxing Technology Co./DiDi Global Inc. to make changes to comply with Chinese data protection rules. 

Also, CAC has ordered the removal of DiDi's app from mobile app stores following allegations of “severely violating relevant laws and regulations while collecting and abusing user data”. But, the regulators did not specify the nature of DiDi's violation.

DiDi responded by saying it had stopped registering new users and would remove its app from app stores. It said it would make changes to comply with rules and protect users' rights.

Chinese regulators have tightened data collection rules for major tech firms in recent years.

DiDi Banned in China for Data Abuse

Just three days ago, CAC announced an investigation into DiDi to protect "national security and the public interest", two days after the firm began trading on the New York Stock Exchange (NYSE), pegging the company’s value at more than $69 billion at the end of the launch day.

The company, trading under the ticker symbol of "DIDI," announced the pricing of its initial public offering of 316.8 million American Depositary Shares (ADSs) at a price to the public of 14 U.S. dollars per ADS for a total offering size of 4.4 billion dollars, assuming the underwriters do not exercise their option to purchase additional ADSs. Each four ADSs represent one Class A ordinary share of the company.

DiDi started trading at $16.65 per share on June 30, up nearly 19 percent from its pricing. The stock closed at $14.14 apiece, after climbing to as high as 18 dollars in intraday trading.

DiDi @ NYSE

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