This article was last updated on July 22, 2022
Nearly 1.2 billion euros in fines were levied on Didi Chuxing’s taxi business in China.
A total of nearly 1.2 billion euros in fines were levied on Didi Chuxing, a Chinese cab company. China’s internet regulator has cited 16 infractions against the corporation.
These infractions are deemed severe by the regulator, who believes the corporation should be harshly penalised. When it comes to protecting the network, data, and personal information, Didi has not met his responsibilities.
Customers’ phone images have been screenshotted by the firm on a huge scale. Facial recognition data, like age and family links, is also frequently retained by Didi. There were also many millions of licence numbers that were left unprotected.
The company’s chairman and president are being held liable for the offences by the regulator. Both have been fined a total of 144,000 euros.
Alibaba, Tencent, and Didi are examples of fast-growing IT enterprises. For transportation, hundreds of millions of Chinese people use Alipay, WeChat, and the Didi app.Every single one of them became de facto monopolists as a result of foreign competitors being barred from participating.
One by one, President Xi has put the IT businesses on the chopping block during the last year or so.”Too powerful, too big, and not in order were some of the most crucial results.” Because of this, the people in charge of competition gave Alibaba and Meituan, the delivery platform, a fine.
As a result, Didi now has to trust it in what can best be viewed as the company’s tentative last salvo. Customers’ personal information looks to have been compromised by Didi, and this is a major problem for the company.
Didi says he accepts the sentence and will make atonement in a Weibo post. “We appreciate the regulator’s and the public’s criticism and oversight.”
China stated a year ago that it was looking into Didi. The stock market went into a tailspin as a result, the business having only gone public in the United States a week earlier. The timing of this announcement could not be worse. Didi wasn’t allowed to sign up any new users, and the apps had to be taken down from Chinese app stores.
According to the Bloomberg news agency, To add insult to injury, Didi has been compelled to remove itself from the US stock market. The firm is now working on its Hong Kong IPO.
Internet service providers have been warned in the past to prioritise “the national interest” and to stop any “leaks” that already exist. Beijing wants to keep Chinese firms’ data from being shared with American authorities by preventing them from listing on Wall Street.
But there’s more to it than that. The message seems to be that the Communist Party is the only one who matters. It’s possible that the worst storm has passed, but the wind doesn’t appear to be slowing down for the time being for IT businesses and their investors.