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FACTBOX-China's regulatory probes into Didi

BEIJING, July 2 (Reuters) - Chinese cyberspace regulator said it has launched a new cyber security investigation into ride-hailing giant Didi Global Inc to prevent data security-related risks and protect national safety, days after its New York initial public offering.

Below are some Chinese investigations into Didi’s operations:

DATA SECURITY

- On Friday, China’s cyberspace agency said it had launched an investigation into the ride-hailing giant to protect national security and prevent data security-related risks. It also said that Didi was not allowed to register new users during its investigation.

ANTI-TRUST

- In 2021, China’s market regulators fined Didi multiple times for not reporting details of merger and acquisitions to government agencies. Sources told Reuters the company is also facing an antitrust investigation over whether Didi used anti-competitive behaviours to drive out smaller rivals. Didi told Reuters at the time that it would not comment on “unsubstantiated speculation from unnamed source(s)”.

OPERATION LICENSES

- In 2020, several local city regulators in China asked Didi to suspend its new standalone ride-hailing service, Huaxiaozhu, citing a lack of operating licenses for the platform in their regions.

Shanghai city transportation regulator has fined Didi several times for hiring drivers with no proper license to operate business in the city.

SAFETY

- In 2018, China’s transportation ministry urged Didi to rework its safety process after two murder and rape cases related to its drivers. Didi suspended its Hitch service and spent billions to add staff to improve its overall safety standard.

Reporting by Tony Munroe and Yilei Sun

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