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China fines Didi Global

China fines Didi Global

Didi Chuxing Technology Co is a Chinese ‘vehicle for hire’ company, headquartered in Beijing. The Chinese company was hailed as the pride of China’s start-up in 2016 when it beat its American rival Uber. But recently China imposed a fine of $1.2 billion for violation of data security laws, which made the innovator and disrupter of China’s transportation sector fast fall from grace. The fine is imposed by the Chinese Internet Regulator, a valuable tech company. The country by imposing this penalty sought to make an example of the consequences of breaching data security laws, which might question the issue of national security.

What’s DiDi’s response to this?

The ride-hailing giant is said to have illegally taken millions of screenshots from users’ phones, driver’s identification was not encrypted but in plain text, and failed to analyze and notify customers about their travel records. DiDi accepted the punishment and stated to improve its data security. Didi is not allowed to register new users or list its apps on the store, a massive hit for the ride-hailing giant.

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