The Strategist

Beijing to fine Didi $1 billion in data security case



07/20/2022 - 03:41



Beijing is getting ready to sanction Didi, a Chinese taxi aggregator, $1 billion for breaking rules regarding gathering and use of personal data. According to the WSJ, the penalty would allow Didi to list its securities on the Hong Kong stock exchange.



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The Chinese watchdog is getting ready to fine taxi aggregator Didi more than $1 billion, putting an end to a year-long probe into security flaws in the collecting and use of consumers' personal data.

As soon as the fine is made public, the authority aims to relax the limitations preventing Didi from adding new users to its platform and bring back the service's apps for download from Chinese app stores. According to sources, the penalty would allow Didi to list its securities on the Hong Kong stock exchange.

The $1 billion charge, which is comparable to the penalties imposed on other Chinese internet firms over the previous two years, would account for about 4% of Didi's projected 2021 revenue of $27.3 billion.

Alibaba Group received a $2.8 billion (4 percent of domestic revenue in 2019) penalties in April 2021 for engaging in anti-competitive behavior. In October 2021, Beijing penalized Meituan, a major food delivery service, for $500 million (3 percent of its domestic income in 2020).

source: wsj.com

 




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