Giant Didi Chuxing, responsible for a popular transport and ride app in China, received a punishment from a regulatory body in his homeland.
The Cyberspace Administration of China (CAC) determined last Sunday (4) that the company’s transport app be removed from the app stores operating in the country — including the virtual shelves of Apple, Xiaomi and Huawei, who are some of the leaders of that transport. Marketplace.
CAC investigations proceeded quickly in early July 2021 and called for suspension and removal for “violations in the collection and use of users’ personal information”. There are no details on exactly what transgressions were committed by the brand.
On the rise
Didi, which owns the transport platform 99 in Brazil, recently held the public offering of shares (IPO) in New York. The company raised $4.4 billion from stock trading.
The same Chinese official carried out a series of investigations against Alibaba in 2020, more specifically after the announcement of the IPO of the group’s financial arm, Ant Financial. Other giants in the sector are yet to be the target of in-depth analysis.
The current allegations, in addition to Didi, also affect the local carpool service Zhipin.com and the freight and cargo apps Huochebang and Yunmanman, which also started expansions to the United States.
What does didi say
The ban on new downloads should not affect users who are already registered, but the new CAC rules prevent the creation of new accounts or the app from being downloaded in China.
“The company will strive to fix any issues, improve risk prevention and technological capabilities, protect users’ privacy and data, and continue to provide secure and convenient services to customers. The company expects the suspension of the app to negatively impact generation revenue in China,” says the official statement from Didi.