Online app

China orders Didi transport service from online app stores


BEIJING – Rideshare service Didi Global Inc., which debuted on the U.S. stock exchange last week, was ordered by Chinese regulators on Sunday to withdraw its app from online stores while the company revises its treatment customer data.

Dozens of social media and e-commerce companies have been urged to treat customer information more carefully as the Communist Party tightens control over its influential industries. Some have been ordered to collect less information.

An investigation revealed “serious violations” in the way Didi collected and used personal information, China’s Cyberspace Administration said. A statement said the company had been asked to “rectify the problems” but gave no details.

Didi said he would “strictly comply” but gave no details. A statement on his social media account said that customers who downloaded the Didi app before Sunday’s order can continue to use it normally.

Didi stock fell 5.3% on Friday after China’s Cyberspace Administration announced an investigation. The agency said Didi was prohibited from accepting new clients until the investigation was completed.

Didi has raised $ 4 billion from investors as part of its New York stock offering.

The company was founded in 2012 as a taxi app and has expanded to other ridesharing options including private cars and buses. He says he is also investing in electric cars, artificial intelligence and other technological developments.

Last year, the ruling party began to tighten its control over China’s rapidly evolving internet industries, launching anti-monopoly and other inquiries.

Chinese leaders are concerned about the influence of e-commerce, social media and other businesses permeating the lives of the Chinese public. Most are private companies.

In April, the Alibaba Group, the world’s largest e-commerce platform, was fined $ 2.8 billion for violating anti-monopoly rules.


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