China has ordered ride-hailing service provider Didi Chuxing off the country’s app stores until future approval after correction and review, just two days after launching a cybersecurity review into the company and four days after its blockbuster initial public offering (IPO) in New York.
The Cyberspace Administration of China (CAC) said in a short statement on Sunday that Didi’s app, often referred to as the Uber of China, has seriously violated the country’s laws and regulations through the improper collection and usage of user information.
As such, the agency has told China’s app stores to remove the app indefinitely, one of the harshest punishments for an internet company. It has also ordered Didi to take corrective measures and to comply with regulations, a hint that it could be restored to app stores in the future.
The punishment comes after the cyberspace security review office, an obscure unit of the powerful administration, announced a review into Didi on Friday, saying it had stopped Didi from registering new users, which was announced the same week of Didi’s IPO on the New York Stock Exchange.
Read original article