China removes DiDi from app stores for data misuse

China removes DiDi from app stores for data misuse

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China removes DiDi from app stores for data misuse

EFE

Beijing, China / 04.07.2021 11:38:18

The China’s regulatory authority required mobile app stores to stop offering the appDiDi Chuxing ride-sharing, the Chinese equivalent of Uber, for “abusing user data.”

In a brief statement, the China Cyberspace Administration also calls on the company to take “concrete steps” to “solve existing legal gaps in accordance with national regulations and standards“and with the aim of” guaranteeing the security of user information. “

DiDi’s mobile app is no longer available to new users in stores on-line, even if those already registered can still use it.

The announcement comes just days after Beijing announced the opening of a cybersecurity investigation against DiDi, which caused its shares to fall on Friday on Wall Street shortly after its debut on that floor.

On Friday, the company assured that it would carry out a “thorough evaluation“of” security risks “, although he did not detail what they consist of.

At its premiere on the New York Stock Exchange, the company achieved a market valuation close to $ 80 billion.

According to the documentation delivered to the Securities Market Commission, DiDi had revenues of $ 21.6 billion last year and net losses of 2,540 million.

In the most recent quarter, the first of 2021, it entered 6.4 billion and made a slight profit of 95 million.

The measure occurs at a time when the Chinese authorities’ relationship with the country’s large digital firms appears to have soured, especially with those that have large subsidiaries dedicated to the fintech sector.

Conglomerate Alibaba received the largest antitrust sanction ever imposed by China in April, while regulators suspended last November the IPO of its subsidiary Ant, which was expected to be the largest in history.

AMP