China’s Didi Global fined $1.2 billion over data breach


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HONG KONG (AP) — China’s internet watchdog on Thursday fined ride-hailing company Didi Global more than 8 billion yuan ($1.2 billion) following an investigation into corporate cybersecurity practices.

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The investigation revealed that Didi violated China’s network security law, data security law and a law protecting personal information, the China Cyberspace Administration said in a statement.

A separate statement explaining the fine said Didi’s “illegal operations” resulted in “serious” national security risks, affecting the country’s information infrastructure and data security.

Didi Chairman Cheng Wei and Chairman Jean Liu were fined 1 million yuan ($148,000) each because they were held liable for violations by the company, regulators said.

“Didi’s violations of laws and regulations are serious, and in light of the network security review, they should be dealt with severely,” the statement said.

Didi illegally collected nearly 12 million screenshots and 107 million facial recognition data from passengers and more than 167 million location data records, among other information, regulators said. The company’s violations began in June 2015.

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Didi said in a statement posted on his official Weibo social media account that he “sincerely” accepted the decision.

“We will take this as a warning and persist in paying the same attention to safety and development,” Didi said, adding that it would contribute to the “safe, healthy and sustainable” development of his business.

The decision comes more than a year after Didi moved forward with its New York stock exchange listing in June 2021.

Regulators, who reportedly did not approve Didi’s listing, launched the investigation two days after the company’s IPO and ordered it to remove more than two dozen apps, sending the stock price plummeting. of his action.

Didi moved to retire from the New York Stock Exchange, exiting June 10.

The ride-sharing company is among a slew of internet tech companies that have come under scrutiny in a tech industry crackdown that began in 2020 as regulators halted introduction stock exchange of Alibaba-affiliated fintech company Ant Group.

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