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Chinese gov suspends Didi app downloads citing data privacy violations

Chinese gov suspends Didi app downloads citing data privacy violations
Chinese gov suspends Didi app downloads citing data privacy violations

The cyberspace administration of the government of China, more commonly known as Cyberspace Administration of China, has reportedly ordered smartphone application stores nationwide to suspend ride-hailing app, Didi, from their catalog after it discovered that the firm was collecting users’ personal data illegally.

As per reports, the CAC (Cyberspace Administration of China), through its social media feed, stated that it has ordered the company to take the steps necessary and make the changes needed to comply with the country’s data protection laws. However, the government body did not specify the exact nature of violation committed by Didi.

Responding to the allegations and the actions of the CAC, Didi stated that it has entirely stopped the registering process for new users and would also be taking down its app from app stores completely. The company further added that it would be making the changes needed to comply with the regulations and protect the users’ rights.

Last week, Didi made its New York Stock Exchange debut following its initial public offering (IPO) of more than $4.4 billion. In the IPO, the ride hailing giant was valued at approximately $67.5 billion, which was significantly down from the $100 billion estimate it was hoping for, after potential investors resisted.

Kirk Boodry, Redex Research director, stated that the CAC’s stance and actions appeared aggressive, given that Didi had already been banned from taking on new users as it went through an extensive  review process that assessed its cybersecurity.

Boodry added that the suspension signifies that the process could take time, but as the company already has an immense installed base, the near-term impact would likely be muted.

For the record, Didi’s app is still operational in China for users that have it already installed on their smartphones. On average, the company offers more than 20 million rides to its users in the country on a daily basis.

Source credit: https://www.straitstimes.com/asia/east-asia/china-cyberspace-agency-says-didi-illegally-collects-user-data

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.