China Fines Didi Global $1.2 Billion For Violating Data Security Laws.

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China’s cybersecurity regulator fined Didi Global Inc $1.2 billion, concluding a probe that forced the ride-hailing leader; to delist from New York within a year of its debut and made foreign investors wary about China’s tech sector.


The CAC said its investigation found Didi had illegally collected millions of pieces of user information ; over a seven-year period starting June 2015, and carried out data processing activities that seriously affected national security.
Authorities have in recent months changed their tone toward the crackdown as they seek to boost an economy hurt by COVID-19 containment measures. The shift has raised hope for companies and investors that the worst is over, though jitters remain.

Chinese technology stocks rose after the Didi announcement, with the Hang Seng Tech Index (.HSTECH) rising over 1% in afternoon trade.
Didi, which delisted from New York last month, previously aimed to list in Hong Kong by June. It put such plans on hold indefinitely after failing to win approval from Chinese regulators, Reuters has reported. read more

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Didi’s fine would be the largest regulatory penalty imposed on a Chinese technology company since Alibaba Group Holding Ltd (9988.HK) and Meituan (3690.HK) were fined $2.75 billion and $527 million respectively last year by the antitrust regulator.

The CAC announced its inquiry into Didi shortly after its New York debut on June 30, 2021.
The restrictions have hit Didi badly, chipping away at its dominance and allowing rival ride-hailing services operated by automakers Geely (GEELY.UL) and SAIC Motor Corp Ltd (600104.SS) to gain market share.

-Reuters.

https://www.reuters.com/technology/china-fines-didi-global-12-bln-violating-data-security-laws-2022-07-21/


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