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By Arghyadeep Dutta, 3:00 pm ET:
Beijing ordered smartphone app store operators to remove 25 more apps operated by DiDi Global Inc’s China arm on Friday, stating that the apps illegally collect user’s personal data, as the government stepped up a crackdown on the ride-hailing giant.
The apps in question include DiDi’s app for drivers, a carpool app, a financing app, and a delivery service app. The cyber watchdog also banned websites and platforms from providing access to DiDi-linked services in China, according to the Cyberspace Administration of China’s (CAC) statement.
It also told Didi to stop registering new users as it launched a probe into the company, citing national security and the public interest. Users who had downloaded Didi’s apps appeared unaffected.
Earlier this week, the regulators ordered to remove DiDi’s main app in China, sending its shares tumbling days after it started publicly trading on the New York Stock Exchange on June 30. DiDi raised $4.4 billion in its IPO.
On Wednesday, China’s State Council cabinet and the Communist Party’s General Office said it aims to crack down on illegal activity in the securities market, in a joint opinion released via state-run Xinhua News Agency, citing concerns about information security.
The company lost about $21.5 billion in market value this week on fears of China’s increased enquiry on domestic tech firms listed overseas.
Picture Credit: Pymnts