The amount of the fine represents more than 4% of the company's annual turnover in 2021.
Didi, the “Chinese Uber”, has been fined 1,2 billion euros for analyzing passenger data without their knowledge. The market leader in car reservations in the Chinese market is also undergoing the takeover of the tech sector by China that started almost two years ago.
The Chinese Cyberspace Administration (CAC) explains in its press release that the “irrefutable evidence” claims that Didi has repeatedly violated Chinese law, particularly in the areas of internet security and personal data protection. The amount of the fine, set at 8,03 billion yuan (almost 1,2 billion euros), represents more than 4% of the company's annual turnover in 2021. For example, in its press release, the regulator criticizes Didi for illegally storing the personal information of more than 57 million drivers in an insufficiently secured format.
The VTC company is also being condemned for analyzing passengers' data without their knowledge, including photos present on their mobile phones. Despite regulatory authorities ordering changes to Didi's practices, there has been no overall and significant improvement, which the China Cyberspace Administration regrets. She claims that the violations of the law spanned a period of seven years from June 2015.
watchful
The major digital companies have been under fire since 2020 from the Chinese authorities who are extremely vigilant. Chinese start-ups have long been encouraged to fund themselves through IPOs in the United States. In 2014, the online trading company Alibaba had raised $25 billion on Wall Street, signing the largest IPO of all time. But in a context of increasing confrontation with the United States, especially on the technological front, China is now encouraging its nuggets to seek funding on the national stock exchanges (Hong Kong, Shanghai, Shenzhen or even Beijing).
Unlike many of his compatriots, however, Didi had held a fundraiser in New York in June 2021. A stubbornness that caused the discontent of Beijing, who mainly feared a transfer of sensitive data to American soil. In addition, the Chinese authorities have launched an administrative investigation against Didi, in connection with his collection of personal data.
Downloading the VTC application was also banned – an unprecedented measure targeting a major technology group. However, people who already had it on their smartphone could continue to use it. Under pressure, Didi finally announced in December that he was withdrawing from the New York Stock Exchange after just five months of listing.
