On July 3, the Cyberspace Administration of China ordered app stores to remove Didi Chuxing.
The CAC said the ride-hailing firm had violated laws on collecting users’ personal data and launched an investigation into Didi to “protect national security and the public interest,” as cited by the Guardian.
Beijing has recently heightened its focus on how data is used by companies in the tech sector. In June, the government passed a new Data Security Law which provides a framework for how data can be collected, stored and used by companies, as cited by CNBC’s Arjun Kharpal.
In a Weibo post on July 4, Didi said that users who’ve already downloaded the app will have no issue ordering a ride. (If you haven’t downloaded the app, give the Didi WeChat Mini Program a try.)
The company also stated that the violations cited by the CAC will be rectified.
The move by China’s top internet regulator comes just days after Didi began trading on the New York Stock Exchange, having raised USD4.4 billion in an IPO.
In a statement, the company said it “expects that the app takedown may have an adverse impact on its revenue in China.”
On Monday, the internet watchdog halted new sign-ups for multiple Chinese apps – Yunmanman (云满满), Huochebang (火车帮) and Boss Zhipin (BOSS直聘) – also citing national security and public interest.
Yunmanman and Huochebang are companies under NYSE-listed Full Truck Alliance, and Boss Zhipin is listed on the NASDAQ.
Didi has been subject to regulatory probes in China in the past, most notably in 2018 following separate murder cases in Shenzhen and Guizhou.
[Cover image via That’s]