Didi Warns of ‘Adverse Impact’ After 25 Mobile Apps Removed
(Bloomberg) -- Didi Global Inc. warned of negative impact after complying with a Chinese order to remove 25 more apps from mobile stores for violations of data security laws.
China’s cyberspace regulator on Friday banned downloads of the services for “serious illegal collection and use of personal information.” They included the enterprise version of its core service, as well as apps covering finance and delivery.
Didi’s U.S.-traded shares fell 7.2% in New York Monday. That adds to a rout that began after the Cyberspace Administration of China stunned the industry and investors by launching a probe into the company just two days after it pulled off the second-largest U.S. IPO by a Chinese firm. The company went public at $14 a share less than two weeks ago and reached $16.40 before the crackdown. It closed at $11.16 in New York Monday.
Didi’s main app, which functions much like Uber in China, was pulled from stores a week ago, when it also warned of adverse impact to its business. Unfolding in rapid-fire fashion over the July 4 weekend and subsequent days, the moves against Didi mark an escalation in a broader campaign to curb the growing power of internet titans from Jack Ma’s Ant Group Co. and Alibaba Group Holding Ltd. to Meituan.
©2021 Bloomberg L.P.