Caixin
Jul 25, 2022 07:13 PM
TECH

China Tightens Grip on Ride-Hailing Platforms’ Data Practices

What’s new: China has released new rules on how ride-hailing platforms should handle data and share it with the government, in another step to boost oversight over a data-rich industry that has been in regulators’ crosshairs for years.

Data generated by online ride-hailing companies must be stored on a government-controlled platform for at least two years, cannot be used for commercial purposes, and cannot be exported to external entities without regulatory approval, according to the regulation published by the transport ministry on Friday.

The companies are also required to periodically conduct data security inspections, promptly rectify security risks and loopholes, and take measures to prevent data from being tampered with, destroyed, leaked, or illegally acquired or used.

The background: The updated regulation was published a day after the country’s internet watchdog slapped ride-hailing giant Didi Global Inc. with an 8 billion yuan ($1.2 billion) fine for breaking national security and personal information protection laws.

The fine has raised the key question of whether it marks the end of the government’s one-year probe into Didi, which led the company to delist from the New York Stock Exchange last month and helped send its stock price down more than 75% from its June 2021 IPO price.

Contact reporter Ding Yi (yiding@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com)

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