China Orders Removal Of DiDi App From Stores Over Data Protection

Cyberspace Administration of China (CAC) on Sunday asked the smartphone app stores in China operated by Apple Inc (NASDAQ: AAPL) and some smartphone makers such as Huawei Technologies Co. and Xiaomi Corp., to stop offering DiDi Global Inc - ADR's (NYSE: DIDI) app, Reuters reports.

The Cyberspace Administration stated on its website that the investigation found the DiDi app "has serious violations of laws and regulations" by illegally collecting and utilizing users' personal data.

CAC has asked DiDi to make changes to comply with Chinese data protection rules.

DiDi said it had stopped registering new users and would remove its app from all the app stores. The company said it would make changes to comply with rules and protect users' rights. 

Chinese regulators' suspension of the DiDi app comes days after the company priced its IPO at $14 and debuted on the New York Stock Exchange.

DiDi's IPO was led by Goldman Sachs Group Inc. (NYSE: GS), Morgan Stanley (NYSE: MS), and JPMorgan Chase & Co (NYSE: JPM).

On Friday, regulators halted new user registration for the duration of the cybersecurity review. 

The CAC said it had launched an investigation into DiDi to protect citizens' safety and national security.

According to the report, DiDi gathers real-time mobility data every day. It uses some of the data for autonomous driving technologies and traffic analysis.

The company has been subject to regulatory probes in China over safety and its operating license.

DiDi Global operates a mobility technology platform focusing on shared mobility, auto solutions, electric mobility, and autonomous driving. It offers services in China and more than 15 other markets.   ​​