Chinese internet regulator has initiated a cybersecurity probe of taxi hailing firm Didi Global Inc., ordering app stores to delist it from their platforms, Bloomberg reports.
- The move by China’s regulator comes days after the company launched one of the largest initial public offerings in the US in the past decade.
- Didi’s current about half a billion users can still continue ordering services on the apps downloaded before Sunday, when the order was issued.
- The order by China caused shares in Didi’s major shareholder SoftBank to plunge about 5.9% on Monday, its biggest intraday decline since May 3.
- The probe adds pressure to Didi, which is already facing other investigations such as data security and antitrust concerns.
- Didi said it is working to address the regulatory concerns to protect users’ personal information, even as it warned the move could adversely affect its earnings from China.
The latest move underscores China’s crackdowns on tech giants, with analysts warning that Beijing should stop companies from listing while facing investigations.
DIDI: NYSE closed down -5.3% on Friday, 9984: TYO is down -5.39% today.