Didi Resumes New User Registration after 18-Month Data Security Investigation

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Didi Resumes New User Registration after 18-Month Data Security Investigation


Didi Global has obtained approval from China’s cybersecurity regulator to resume registering new users for its ride-hailing service from January 16, as reported by Reuters on the same day. In July 2021, Chinese regulators launched a data security probe into Didi, two days after the company debuted on the New York Stock Exchange (NYSE) against the regulators’ will. Moreover, regulatory departments removed Didi’s 25 mobile apps from app stores and suspended new user registrations. Last July, Didi was also slapped with a USD1.2bn fine for violating China’s cybersecurity, data security, and personal information protection laws. In a recent statement, Didi pledged to take effective measures to ensure platform safety and data security, as well as safeguard national cyberspace security.

Didi is one of the most impacted enterprises after China strengthened supervision over tech and internet giants in late 2020. From July 2021 to December 2022, the monthly orders received by Didi slumped almost by half. Faced with stringent regulatory pressure, the company delisted from the NYSE in June 2022 and sought to list in Hong Kong after completing its rectification. Despite this, it remained the leading player in China’s ride-hailing market. In mid-2022, the company’s daily orders dropped from a peak of 28m in 2Q21 to 16m, while its major competitor Gaode Map had 7m daily orders. Lifting restrictions on Didi signals that China is easing its crackdown on the tech sector. According to Guo Shuqing, a top central bank official, the rectification of the financial businesses of 14 platform companies has been “basically over”.