Didi app banned in China! Ride-hailing company, linked to Apple, was collecting user data illegally

In a big move, China has banned Didi app with immediate effect, saying it had collected user data illegally. Didi app is linked to US tech major Apple Inc.

FILE PHOTO: Didi Chuxing's CEO Will Cheng and President Jean Liu attend a launch event for D1 electric van by Didi and electric vehicle maker BYD, in Beijing, China November 16, 2020. REUTERS/Yilei Sun//File Photo (REUTERS)

Didi app has been banned in China for collecting user data. The ride-hailing app, which has links to Apple, had been accused of collecting users' personal data illegally. This was revealed by the Cyberspace Administration of China (CAC), but it did not indicate what the data that was collected was about. CAC also said that it has ordered Didi to obey the rules. Over the recent years, tech companies have seen Chinese authorities crackdown on anything perceived as a violation of rules.

Not just a ban, Didi also faces an investigation into whether it has jeopardised "national security and the public interest".

Notably, this crackdown against Didi comes just 2 days after its IPO had listed on the New York Stock Exchange.

Apple had invested as much as $1 billion Didi Global in 2016, which was the direct rival of Uber.

Not just Apple App Store, the order from China's internet regulator also applies to stores run by Huawei and Xiaomi.

CAC has ordered Didi to correct the mistakes and protect data of its users as per requirements of the law in China.

Didi has reacted by saying it has stopped new user registrations as of July 3 and will be rolling out changes required by authorities in its app. However, existing users will not be affected as the app will keep on running for them.

A Bloomberg report stated, "The surprise probe and rapid decision by China's powerful internet regulator piles on the scrutiny of Didi over issues ranging from antitrust to data security."

It added, "More broadly, Beijing has been curbing the growing influence of China's largest internet corporations, widening an effort to tighten the ownership and handling of troves of information that online powerhouses from Alibaba Group Holding Ltd. to Tencent and Didi scoop up daily from hundreds of millions of users."