Chinese officials fined $ 1.2 billion on Thursday for Didi, the country’s ride-hailing service giant, for a data security breach. This is the latest in a series of regulatory measures that have plunged China’s once soaring Internet sector.
Penalties announced by China’s Internet regulator, China’s Cyberspace Administration, ruined the US blockbuster list and eventually led to the decision to delist from New York, the ride-sharing giant’s data practices. The stock exchange has completed a year-long survey on. Regulators said they would also fine the company’s two executives.
The company violated several Chinese data security laws by collecting millions of addresses, phone numbers, facial images, and other data.
A spectacular fine will probably clear the way for former Wall Street lovers to list their shares in Hong Kong. However, the regulator’s announcement did not mention whether Diddy would allow the app to be returned to the Chinese app store and re-register new users. The government imposed these restrictions on Diddy’s activities last July as part of an investigation.
A fine that closely matches the fines paid by other Chinese internet giants for a company’s share of annual revenue during a nearly two-year crackdown on this sector. Some analysts have pointed out signs that the enthusiastic period of rulemaking and strict enforcement by Chinese regulatory agencies may be waning.
But tech companies like Diddy face a long road to recovery in the face of a broader economic slowdown, dragging activity due to China’s strict Covid regulations, and repeated scattered cities across the country. I urged the blockade.
Diddy said in a statement that he would accept the punishment and consider it a warning to improve the security of his data. “We would like to express our sincere gratitude for the inspection and guidance of the relevant authorities and the criticism and supervision of the general public,” the company said.
