Shanghai: Cyberspace China Regulator has launched a probe to a giant that is in a lead, Didi Global, calls to stop adding new users and for the application store to delete it, the day after that go public in sales of New York shares $ 4.4 billion.
The move, followed by similar actions against two Chinese companies recently registered in the US, came in the midst of tightening policies around data control and privacy, and wider crackdown in technology companies.
What are the accusations against Didi? Cyberspace China Administration (CAC) on July 2 requested Didi to stop receiving new users registration, citing Cybersecurity China’s law, a piece of law held in 2017.
Two days later, CAC said the Didi application “has serious legal violations and related regulations With a collection of personal information.
“CAC has not openly determined violations.
What user data collected didi? Didi, China’s biggest travel ignition company, provides 20 million vehicles a day in China to users who register through applications that use telephone numbers and passwords.
Didi collects users’ locations and travel route data, for security and data analysis.
This routinely publishes reports that describe large data analytics, show, for example, how many times people in certain cities completed work, or which employers have the longest working hours.
Didi also complements the car with camera monitoring cameras, and what happens in the car, collects data at 100 billion kilometers of Chinese road per year.
Didi saves all user data and Chinese roads on the domestic server.
A Didi executive said on Saturday it could not pass data to the United States.
Why does CAC target Didi? China is in the process of improving its policy on privacy and data security.
At the end of April, China issued the second version of the Draft Personal Information Protection Act, which called for a technology platform to impose strict steps to ensure safe user data storage.
In September, China will implement data security laws, which requires companies that process “important data” to conduct risk assessment and submit reports to the authorities.
It also called for organizations that process data that affects Chinese national security to submit to annual reviews.
Michael Tan, who heads the practice of TMC China International Law Firm Taylor Wessing, said this law built the Cybersecurity law, and the actions against Didi and other companies openly showed how serious the government would enforce new laws.
In May, CAC accused 105 applications, including Byedance Douylin and Microsoft Bing, collecting excessive user personal information and accessed it illegally.
What’s wrong with the time? This step has drawbed a comparison until the end of last year when Ant Group, Fintech Alibaba affiliates, saw Shanghai and Hong Kong IPO which was massively foiled when the regulator announced the days of investigating before the list.
Some investors and experts suspect that by targeting high-tech companies listed in the United States, Beijing indicates it wants a rich technology company to register domestically, not abroad, for security reasons.
On Tuesday Tuesday, the Chinese cabinet said Beijing would increase the supervision of Chinese companies listed off the coast and improve cross-border and security data rules.
“When the company goes public they need to reveal a lot of detail about how their supply chains really operate,” said Nico Bahmanyar, which tracks Chinese data policy in Beijing-based law firm leaves.
“So, if China sees the risk there, it will be easier to control the Hong Kong Stock Exchange than the US Stock Exchange.”