Officials from the Cyberspace Administration of China, Ministry of Public Security, Ministry of State Security, Ministry of Natural Resources, as well as the tax, transport and antitrust regulators are beginning an investigation into Didi’s data security, according to a statement released by the cyberspace watchdog Friday.
Days after Didi’s initial public offering in the US on June 30, the CAC announced the probe into Didi and ordered app stores to remove its services within China. The probe into Cheng Wei’s ride-hailing firm set off renewed scrutiny over China’s tech giants, which had already been under pressure from antitrust regulators.
Shares of Didi have dropped nearly 12% since its debut. The company twice warned of adverse impact on its business following the removal of its apps in China.