Didi fined $1 Billion sighting Data Security
Chinese authorities are preparing to impose a fine of more than $1 billion on Didi, bringing an end to a year long investigation into the company.
Once the penalty is imposed, the government intends to lift a restriction that prevents Didi from adding new users to its platform and enables its mobile applications to be restored to domestic app stores.
The fine will also pave the way for Didi to launch a listing in Hong Kong. The $1 billion fine would account for about 4% of Didi’s $27.3 billion total sales last year.
Didi has become a high-profile target of the Chinese government’s crackdown on the country’s internet industry. Shortly after its listing on the New York Stock Exchange in late June 2021,
Chinese cyber regulator launched an investigation citing data security. Didi’s app was subsequently removed from the app store and new users were banned from signing up.
To overcome the regulatory action, Didi ended an 11-month listing on the New York Stock Exchange in early June. Didi’s shares, which were previously traded as American depository receipts (ADRs), moved to the over-the-counter market (OTC) in the U.S where major information is not a mandate.
Regulators are easing their crackdown on the tech sector as China’s economic growth slows in recent month.