DiDi
A Didi Chuxing logo on its corporate building in Beijing. Photo Shutterstock images

China has ordered ride-hailing service provider DiDi Chuxing off the country’s app stores until future approval after correction and review.

South China Morning Post reported that 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 by illegally collecting users’ personal data.

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 comply with regulations, hinting that it could be restored to app stores in the future.

DiDi raised at least $4 billion this week after the New York Stock Exchange debut in one of the largest U.S. IPOs.

During the review, DiDi is required to suspend new user registration in China.

In a statement, DiDi said it will fully cooperate with the PRC government authority during the review.

The company said it plans to conduct a comprehensive examination of cybersecurity risks and improve its cybersecurity systems and technology capabilities.

Apart from the suspension of new user registration in China, the rider hailing maintains regular operation.

For the 12 months ended March, DiDi served 493 million annual active users and saw 41 million transactions daily, revealed recently.

Meanwhile, Rosen Law Firm, a global investor rights law firm, announced yesterday in a statement that it is investigating potential securities claims on behalf of shareholders of DiDi resulting from allegations that DiDi may have issued materially misleading business information to the investing public

“If you purchased DiDi securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law firm is preparing a class action seeking recovery of investor losses.”

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