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China’s cybersecurity regulator has ordered Didi to be removed from national app stores just days after the company’s giant raised $ 4.4 billion on this year’s largest public list.
Didi’s application has “problems in seriously violating laws on the collection and use of personal information,” the China Cyberspace Administration said Sunday evening, two days after announcing it had opened an investigation into cybersecurity in Didi. On Friday, the CAC asked Didi to stop registering new users.
Last week, Didi’s IPO continued in New York, priced at $ 14 per share, with no press conference, social media bragging or bell ringing ceremony, following a roadshush show precipitated.
Didi has more than 377 million users and 13 million active drivers in China annually. The company has a wealth of data, from addresses frequented by users, to contacts on their phones and audio recordings of car trips, which it began taking after the 2018 passenger killings.
Didi said he would “decisively implement” the demands of the authorities and withdraw the application from the stores “for rectification.”
“We sincerely thank the competent authorities for guiding Didi to investigate our risks and we will seriously rectify and reform,” Didi said.
The company added that users who had already downloaded the app would continue to use it and that travel and passenger travel orders would not be affected.
Didi shares opened 11% in New York on Friday after the cybersecurity review was announced, before stabilizing to end the 5.3% session, at $ 15.52.
The regulators’ decision to announce the review and how quickly it announced a sanction over the weekend are unprecedented in China’s one-year cybersecurity review system.
The CAC announcement on Sunday said it had acted “on the basis of complaints and after verifying them with inspections”, but did not specify what problems it had encountered with Didi’s data security measures or how long they had existed.
Additional reports from Nian Liu
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