China fines Didi Global $1.2bn for violating data security laws

China's cybersecurity regulator said on Thursday it has fined Didi Global Inc 8.026 billion yuan ($1.19 billion), concluding a probe that forced the ride-hailing giant to delist from New York within a year and cast a gloom over the Chinese tech sector, reports Reuters.

The Cyberspace Administration of China (CAC) said its investigation found Didi had illegally collected millions of pieces of user information over a seven-year period starting June 2015, and carried out data processing activities that seriously affected national security.

In an unusual move, the CAC said it had also fined the company's founder and Chief Executive Cheng Wei and President Jean Liu 1 million yuan each. "Didi's violations of laws and regulations are serious, and should be severely punished," it said.

Didi said in a statement on its Weibo account that it accepted the CAC's decision and would conduct comprehensive self-examination and rectification.

Didi ran afoul of the CAC when it pressed ahead with its US initial public offering (IPO) even though the regulator had urged the company to put it on hold while a cybersecurity review of its data practices was conducted, sources have told Reuters.

The CAC announced its inquiry shortly after the company listed on June 30, 2021. It also ordered app stores to remove 25 mobile apps operated by Didi and told the company to stop registering new users, citing national security and the public interest.