China fines Didi Global $1.2 billion for violating cybersecurity and data laws
The Cyberspace Administration of China (CAC) said in a statement that the company violated the country’s cybersecurity law, data security law and personal information protection law.
« The facts of the violations of laws and regulations are clear, the evidence is conclusive, the circumstances are grave and the nature is vile, » the statement added.
Along with the $1.19 billion fine, the regulator also imposed personal fines of 1 million yuan ($147,000) on Didi’s chairman and CEO, Cheng Wei, and chairman Liu Qing, respectively. Liu Qing is also known as Jean Liu in English.
He added that the company had « avoided meeting the explicit requirements of regulators and evaded surveillance in malicious ways », and that the company’s « illegal operations » had resulted in « serious risks to the security of the China’s key information infrastructure and data security ».
The regulatory moves have made the company a frontrunner in Beijing’s crackdown on tech companies and wiped tens of billions of dollars from its market capitalization.
Under pressure from Chinese regulators, Didi announced in December that she would begin the process of delisting from the NYSE and pivot to Hong Kong. In May, Didi shareholders voted to allow the company to be delisted from the NYSE.
Shortly after the regulator’s announcements, Didi Global responded in a statement on Thursday that it « sincerely » accepts the regulator’s imposition of administrative penalties.
« We sincerely accept this decision and resolutely obey it. We will strictly follow the sanction decision and the requirements of relevant laws and regulations, carry out comprehensive and thorough self-examination, and actively cooperate with supervision and comprehensive rectification with care, » he added. said.
« We will take this as a warning and further strengthen the construction of cyberspace security and data security, strengthen the protection of personal information, and earnestly fulfill our social responsibilities. We will serve every passenger, driver and partner well, and realize the security , healthy and sustainable development of the company,” he added.