China to fine Didi Global over data-security breaches

Chinese authorities are set to impose a fine of more than $1 billion on ride-hailing company Didi Global. Once the penalty is disclosed, the government plans to ease a restriction banning Didi from adding new users to its platform, and to allow the company’s mobile apps to be restored to domestic app stores.

The fine will also help Didi to kick-start a new share listing in Hong Kong. Last year, the company’s shares tumbled more than 80% from its listing price after Chinese regulators announced a data-security investigation into the company.

Chinese authorities also ordered app stores in the country to remove Didi’s mobile apps. Didi delisted from the U.S. exchange in June this year after telling shareholders it needed to do so to resolve the company’s cybersecurity investigation.

Earlier this month, a Didi subsidiary was named among companies, including Alibaba and Tencent, that China had fined in March for failing to comply with anti monopoly laws and to disclose certain transactions. China’s central bank also said that it had fined Didi’s payments unit, a current staffer and a former employee 4.65-million-yuan, equivalent to about $690,000, over the mishandling of customer information and identity verification.