The Chinese government chose a new direction for the attack on its own technological giants and opened another front in the war, which Beijing leads with companies since last year, writes CNBC. Now we are talking about the regulation of data collection and protection.
For the first days of July, local Cyberspace Office began several investigations at once. July 2, it was announced verification of the DIDI taxi aggregator associated with data security. On July 4, the company faced a prescription on the removal of its service from apps in the country. On July 5, it became known about the investigations against the Boss Zhipin, the developer of the application to find a job, as well as Full Truck Alliance subsidiaries, which offers online solutions in the field of cargo delivery. At the same time, DIDI and Boss Zhipin recently went to the stock exchange.
Beijing pressure on local technological giants is growing not the first month, while the emphasis was focused on issues of competition and regulating financial technology. Now the authorities drew attention to data storage. The ongoing checks undergo on the basis of already current legislation, but soon new rules should be joined, which will be gathered as companies, stored and transmit information. The law on the protection of personal data is also being prepared.
“We will definitely expect significant tightening with regard to user data when two of these law will begin to act. This is definitely another front (regulation. – approx.” Tape.ru “),” Kendra Shefer said , Partner in Consulting Company Trivium China.
At the same time, the essence of the current claims to DIDI is not quite clear, notes Bloomberg. The test began just two days after the company’s release on the stock exchange, and the regulator announced that it was associated with risks for data security, national security and public interest. The details of what exactly the focus is on the investigation and which DIDI is facing the punishment yet. In June, the taxi aggregator collided with suspicions in antitrust disorders.
measures followed against the tightening of Peking policies against technological giants and combating their growing influence. In November 2020, the decision of the authorities was suspended the placement of Ant Group shares, the Alibaba subsidiary, due to the criticism of the founder of Jack Ma, which concerned the regulation of the sector. In April, Alibaba was fined at a record amount of 2.8 billion dollars.