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Still, their participation signals the potentially serious nature of the investigation. Potential outcomes include financial penalties, suspensions of business licenses, and criminal charges.
The large number of ministries participating in the probe also highlights the breadth of the data Didi holds and that is now coming under regulatory scrutiny. The Transport Ministry regulates the ride-hailing industry, while the Ministry of Natural Resources is in charge of mapping and road surveying.
Didi Didn’t Respond To A Request For Comment.
Didi is the first major internet company to be publicly subject to the cybersecurity review, said Yan Luo, a partner and cybersecurity lawyer at Covington & Burling LLP in Beijing. Last week, the Cyberspace Administration of China released a security review revision, for public comment, in which it said companies holding personal data on at least one million users must apply for a cybersecurity review before any foreign listings.
