Didi Global may have to cough up more than US$1 billion in fines as Chinese regulators move to close a year-long investigation into the ride-hailing firm’s data security practices, sources told Reuters.
The penalty, which is worth almost 4.7% of Didi’s total revenue in 2021, could be the biggest slapped on a Chinese tech firm. Last year, Chinese authorities fined tech giants Alibaba and Meituan US$2.75 billion and US$527 million, respectively.
But this could also give Didi a reprieve from a ban that prevented it from bringing in new users on its platform as well as facilitate the return of its apps to local app stores.
Reports about the fine come after the Chinese ministry of transport warned Didi and three other tech firms over unfairly low competitive prices, which “damaged the legitimate rights and interests of truck drivers.”
See also: 20 largest exits in China
Editing by Samreen Ahmad and Joy Tirkey
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