China’s regulatory authorities on Sunday demanded that mobile app stores stop offering the DiDi Chuxing ride-sharing app, the Chinese equivalent of Uber, for “abusing user data.”
In a statement, the China Cyberspace Administration also asks the company to take “concrete measures” to “solve existing legal gaps in accordance with national regulations and standards” and with the aim of “guaranteeing the security of information from users “.
Thus, the Didi mobile application is no longer available to new users in online stores, although those already registered can still use it, as EFE collects .
The announcement comes just days after Beijing reported the opening of a cybersecurity investigation against Didi, causing its shares to tumble on Wall Street on Friday shortly after its debut on that floor.
On Friday, the company said it would carry out a “comprehensive assessment” of the “security risks”, although it did not detail what they consist of.
The company achieved a market valuation close to $ 80 billion
At its premiere on the New York Stock Exchange , the company achieved a market valuation close to $ 80 billion.
According to documentation submitted to the Securities Market Commission, Didi had revenues of $ 21.6 billion last year and a net loss of $ 2.54 billion.
In the most recent quarter, the first of 2021, it entered 6.4 billion and achieved a slight profit of 95 million.
The move comes at a time when the Chinese authorities’ relationship with the country’s large digital firms seems to have soured, especially with those that have large subsidiaries dedicated to the fintech sector.
Conglomerate Alibaba received the largest antitrust sanction ever imposed by China in April, while regulators suspended last November the IPO of its subsidiary Ant, which was expected to be the largest in history.