Didi, one of China’s most popular ride-hailing services, has been hit with a massive $1 billion fine after it was discovered that the company had broken data security laws. This marks the largest fine of its kind in the country and raises questions about how this will affect the company’s future growth. This story highlights several important points about data security laws in China and what enterprises can do to stay compliant with these regulations and avoid such stiff penalties.
Didi 1 Billion yuan ($8.026 Billion) for Violating its Data Security Law
China’s cybersecurity authority fined Didi Global on Thursday for preventing the company from adding new users during a yearlong investigation. China’s Cyberspace Administration fined Didi 1.19 billion yuan ($8.026 billion) for violating its data security law, network security law, and personal information protection law. In addition, two Didi executives were fined 1 million yuan each. In an online statement, Didi said it accepted the cybersecurity regulators’ decision. In an online statement, Didi said it accepted the cybersecurity regulators’ decision.
Didi has come under fire after filing for its IPO despite outstanding concerns about data security
In its announcement, the cybersecurity authority failed to state whether the fine would result in Didi adding more users to its app or restoring its presence in China’s app stores. Last year, just days after Didi’s IPO on the New York Stock Exchange, the investigation was announced. Didi came under fire after it filed for its IPO despite outstanding concerns about data security.
Six months later, the company announced it would delist from the NYSE and make plans to list in Hong Kong.