Didi, the Chinese giant of the VTC, will be ordered to pay more than 1 billion dollars to Beijing following an investigation into the management of personal data. By paying this fine, he would see his restrictions lifted.
Not everyone would be relieved to pay a fine of over $1 billion. This is however the case of the Chinese VTC champion, Didi, who is preparing to pay this sum to Beijing. By paying this amount, which represents 4.7% of its 2021 turnover, Didi will see the restrictions that weighed on him lifted.
The story begins in June 2021, when Didi decides to join the New York Stock Exchange against the advice of Beijing. The Chinese Cyberspace Administration (CAC) responds by opening an investigation into the company, accused of having illegally collected personal data. Twenty-five mobile applications operated by Didi were then withdrawn from blinds Chinese. Finally, under pressure from Beijing, the VTC giant eventually withdrew from Wall Street last December.
The investigation and the resulting restrictions have severely penalized Didi. Its competitors took advantage of this to gain market share. But the decision of the CAC, by ending a year of investigation, will allow the VTC company to be available again on the application stores and to register new customers. The company will also be able to pursue its listing project in Hong Kong.