China to Fine Didi More Than $1 Billion for Data Breaches

China to Fine Didi More Than $1 Billion for Data Breaches
Photo: unsplash.com 19.07.2022 104

Chinese authorities are preparing to impose a fine of more than $1 billion on ride-hailing firm DiDi Global, Reuters reported, citing sources.

According to the sources, the fine would be more than 8 billion yuan ($1.28 billion), accounting for about 4.7% of DiDi's $27.3 billion total revenue last year. Official information has not yet been made public.

DiDi's fine would be the largest regulatory penalty imposed on a Chinese tech company since IT giants Alibaba and Meituan were fined $2.75 billion and $527 million respectively last year by China's antitrust regulator.

DiDi has struggled to bring its business back to normal after angering Chinese regulators by pushing ahead with its $4.4 billion New York listing in June 2021 despite being asked to put the float on hold.

Days after DiDi went public the Cyberspace Administration of China, launched a cybersecurity probe into the company's data practices and ordered app stores to remove 25 mobile apps operated by DiDi.

The restrictions have chipped away at DiDi's dominance and allowed rival ride-hailing services operated by automakers Geely and SAIC Motor to gain market share.

The company announced it would delist from the New York Stock Exchange in December, and won its shareholders' nod for the plan in May.

Amid news of an investigation into DiDi ending in June 2022, the company's stock jumped more than 50 percent in premarket trading.

digital markets  China 

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