China Fines Ride-hailing App Didi Global $1.2 Bln

(RTTNews) - The Cyberspace Administration of China or CAC has imposed a fine of 8.026 billion yuan or $1.2 billion against ride-hailing app Didi Global Inc. (DIDI), for data violations, putting an end to a year-long investigation into the Beijing-based company. Senior executives Will Cheng Wei and Jean Liu Qing were each fined 1 million yuan, the regulator said in a statement on Thursday.

Authorities did not say whether Didi's apps, 26 of which were removed from domestic app stores in July 2021, would be restored. Didi said on its Weibo account on Thursday that it fully accepted the regulator's decision and would rectify its wrongdoings.

The CAC's decision comes more than a year after authorities initiated an unprecedented cybersecurity probe into the company, days after it launched a US$4.4 billion initial public offering in New York on June 30, 2021.

Ahead of the IPO, Didi granted its senior executives and directors $3 billion in stock options. However, the abrupt investigation shook investor confidence in Chinese technology stocks. Since then, few Chinese companies have chosen to list in the US. Last month, Didi started trading on the over-the-counter market after shareholders voted to delist the company from the New York Stock Exchange.

The CAC said in its statement that Didi had committed 16 offences involving the illegal collection of data from drivers and passengers. They include the illegal processing of 64.7 billion personal information entries over the span of seven years since June 2015.