After China banned the ride-hailing firm Didi Chuxing over alleged collection of users’ data, the company said on Monday that the removal from the app stores in the country is set to have an adverse impact on its revenue.
State-run the Global Times earlier said that Didi’s apparent “big data analysis” capability could pose risks to the security of personal information of millions of users.
“The company expects that the app takedown may have an adverse impact on its revenue in China,” Didi said in a statement.
The Cyberspace Administration of China (CAC) on Sunday ordered app stores to remove Didi Chuxing’s app.
The regulator said it had ordered the company to make updates to put it in compliance with China’s data protection rules.
The removal of Didi’s app came after the company made its trading debut on the New York Stock Exchange in an initial public offering (IPO) that raised $4.4 billion.
Didi said it will rectify any problems and will protect users’ privacy and data security.
The Global Times said that “no internet giant can be allowed to become a super database of Chinese people’s personal information that contains more details than the country, and these companies cannot be allowed to use the data however they want”.
China’s regulators have been cracking down on tech companies, including the giant Alibaba, for a range of violations.
Source: IANS
