Didi is China's biggest ride-hailing company, providing 20 million rides a day in China.
The Cyberspace Administration of China (CAC) has asked Didi to stop accepting new user registrations
In a surprising move, the Chinese cyberspace regulator has launched a probe into ride-hailing giant Didi Global. It has also stopped the company from adding new users and requested app stores to remove it. The Cyberspace Administration of China (CAC) hasaskedDidi to stop accepting new user registrations, citing China's Cybersecurity Law implemented in 2017. It also declared that the Didi app "has serious violations of laws and regulations pertaining to the collection of personal information." However, it did not publicly specify the violations.
Didi is China's biggest ride-hailing company, providing 20 million rides a day in China. The firm, which saw its market value fall by around $15bn (£10.9bn) after the crackdown, had the second-biggest ever US initial public offering (IPO) for a Chinese company, as it raised $4.4bn.
In Didi's prospectus, which was made available ahead of the IPO, the firm warned potential investors that their ability to protect their "rights through US courts might be limited because we are incorporated under Cayman Islands law."
The document also included some of the regulatory risks to its operations but did not indicate that the CAC would start investigating the firm and ban it from accepting new users. China will also be implementing its Data Security Law which requires companies that process "critical data" to conduct risk assessments and submit reports to authorities.
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