Didi recently withdrew a listing on the New York Stock Exchange in which he raised more than $ 4.4 billion. – © AFP
China’s cyber-watchdog dog on Sunday ordered that public transport service Didi be removed from app stores after investigations found that its collection of user data “seriously violated” the regulations.
The announcement comes just days after China’s Cyberspace Administration said it was investigating the company for “cybersecurity” issues and “to avoid security risks for national data.”
The investigation caused Didi’s shares to fall, shortly after withdrawing from a New York IPO, which raised more than $ 4.4 billion.
Chinese technology giants have been dragged down in recent months by regulatory crackdown, which has affected companies ranging from Alibaba to Meituan, by government authorities fearing their oversized influence on consumers.
In Didi’s case, the cyber watchdog said, “After checks and verifications, it was found that the Didi Chuxing application seriously violated the rules regarding the collection and use of personal information.”
He added that he was notifying online stores that they were removing the Didi app and asking the company to “rectify existing issues and effectively protect users’ personal information.”
In a statement, Didi said users who have already downloaded their app can continue to use it and that driver commands will not be affected.
The firm “would make serious corrections … and continue to protect user privacy and data security,” he added.
The Didi app claims to have more than 15 million drivers and nearly 500 million users, and is often the easiest and fastest way to call Chinese cities with a lot of people.
The vigilante did not detail what national security risks Didi posed, but said new users would not be able to register during the investigation period.
As of Saturday, registration of new users had been suspended, Didi confirmed.
Didi is the latest Chinese technology unicorn targeted by authorities after Alibaba’s fintech arm, Ant, was forced to stop a record-breaking IPO last November.