China has asked ride-hailing company Didi Chuxing to remove from app stores due to serious violations on Didi Global's collection and usage of personal information.
Multiple reports said Chinese cybersecurity watchdog the Cyberspace Administration of China (CAC) announced the ban on Sunday, just two days after the regulator said it was starting a cybersecurity review of the company. However, currents users downloaded that app before Sunday can still continue to order rides and other services.
The authority said on Sunday that it ordered Didi Chuxing to rectify its problems following legal requirements and national standards, and take steps to protect the personal information of its users. On the same day, Didi Chuxing said it had halted new user registrations as of 3 July and was now working to rectify its app in accordance with regulatory requirements.
The CAC did not specify what it would look into, but the time of announcement came after Didi Chuxing's IPO and on 30 June and the Communist Party’s 100th anniversary celebrations in Beijing.
According to Bloomberg, the investigation may be about scrutiny of Didi Chuxing over issues ranging from antitrust to data security. Didi Chuxing is not the only Chinese tech company that was regulated by the Chinese authority, as the Chinese government has been limiting the growing influence of China’s largest internet corporations, including Meituan, Tencent and Alibaba.
Meanwhile, as the business of ride-hailing has shown signs of growing slowly, it began to explore new businesses to offset slowing ride-hailing growth, from car repairs to grocery delivery.
Previously, the State Administration for Market Regulation said that Alibaba's "choice of two" behaviour "eliminates and restricts competition" in China's eCommerce market and "hinders the free circulation of commodity services and resource elements". It added that this also "affects the innovation and development of the platform economy".
The company was fined with US$2.8 billion imposed by China's State Administration for Market Regulation in April. After that, Alibaba said it would operate in accordance with the law and continue to strengthen compliance systems and build on growth through innovation.
Alibaba Group slapped with US$2.8bn antitrust fine, no plans to appeal
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