China fines Didi Global $1.2 billion for violating cybersecurity and data laws

The Cyberspace Authority of China (CAC) said in a statement that the firm violated the country’s cyber security law, data security law, and personal information protection law.

“The facts of violations of laws and regulations are clear, the evidence is irrefutable, the circumstances are serious, and the character is vile,” the message says.

In addition to the $1.19 billion fine, the regulator also imposed a 1 million yuan ($147,000) personal fine on Didi Chairman and CEO Cheng Wei and President Liu Qing, respectively. Liu Qing is also known as Zhang Liu in English.

AT separate statementThe CAC said investigators found that Didi committed 16 violations of the law, including illegally obtaining some information from users’ smartphones and collecting data on facial recognition, age, work and family relationships.

He added that the company “avoided compliance with explicit regulatory requirements and maliciously evaded oversight,” and the company’s “illegal operations” created “serious risks to the security of China’s key information infrastructure and data security.”

Just days after Didi’s $4.4 billion Wall Street IPO on June 30, 2021, a regulator banned Didi from using app stores in the country and launched an investigation into its handling of customer data. Authorities have accused Didi of violating privacy laws and creating cybersecurity risks. Their actions were also widely seen as punishment for the company’s decision to go public abroad rather than in China.

The regulatory action has made the firm a model for Beijing’s crackdown on tech companies and wiped out tens of billions of dollars from its market capitalization.

It also hit Didi’s internal business. The company reported a loss of $4.7 billion for the third quarter of 2021. Its revenue fell 1.7% from the same period a year earlier.

Under pressure from Chinese regulators, Didi announced in December that it would begin the NYSE delisting process and refocus on Hong Kong. In May, Didi shareholders voted to delist the company from the NYSE.

Didi leaves Wall Street.  The

Shortly after the regulator’s announcements, Didi Global responded in a statement Thursday that it “sincerely” accepts the regulator’s imposition of administrative fines.

“We sincerely accept this decision and resolutely obey it. We will strictly follow the punishment decision and the requirements of the relevant laws and regulations, conduct a comprehensive and in-depth self-examination, and actively cooperate with the supervision and carefully complete the correction, ”the message says. said.

“We will take this as a warning and further strengthen the design of cyberspace and data security, strengthen the protection of personal information, and seriously fulfill our social obligations. We will serve every passenger, driver and partner well and realize the safe, healthy and sustainable development of the enterprise,” he added.

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