Chinese Authorities Level Up on Didi Investigation
The Cyberspace Administration of China (CAC) is the new sheriff in town.
Two weeks after it started a cybersecurity review of Didi Chuxing on 2 July 2021, it took 6 other government comrades to check into the ride-hailing app’s office premises on 16 July to conduct a network security review.
The CAC was joined by the merry band of the Ministry of Public Security, the Ministry of State Security, the ministry of Natural Resources, the Ministry of Transport, the State Taxation Administration, and the State Administration for Market Regulation.
As part of the investigation so far, the main Didi app – together and 25 related apps – were pulled off app stores due to data security concerns.
Didi, which just had a mammoth IPO in New York on 1 July, has said the removal of the apps has an “adverse impact” on the company.
The market is now looking at the investigation of Didi as an example on how Beijing will deal with data security violations that can morph into “national security” concerns.
Since pulling Ant Financial’s IPO last November, China has clamped down on the big tech giants with regard to data security violations and anti-competitive behaviours.
The once unseen CAC has now been thrusted to the fore, and also with new powers to rule on overseas listings.