DiDi Aims To Relaunch Apps In China: Report

Uber Technologies UBER counterpart DiDi Global Inc DIDI aims to relaunch its ride-hailing and other apps in China by 2021 end betting on the completion of the Chinese regulatory investigation, Reuters reports.
DiDi officials expect the finalization of regulatory penalties by December. DiDi has set aside 10 billion yuan ($1.6 billion) for a potential fine.
DiDi called the Reuters story "pure hearsay with no grounds in fact."
A fine of as much as $1.6 billion would represent 7% of Didi's 2020 revenue, Bloomberg reports.
Alibaba Group Holding Ltd BABA paid a penalty of $2.8 billion for antitrust violations, amounting to 4% of its annual sales.
In July, the Cyberspace Administration of China (CAC) ordered app stores to remove 25 mobile apps operated by Didi shortly after its U.S IPO. It also prohibited DiDi from registering new users, citing national security and the public interest.
Didi ran afoul of the CAC when it pressed ahead with the U.S. IPO on June 30, even though the regulator had urged the company to hold while conducting a cybersecurity review of its data practices.
Didi has since been making changes to the apps to comply with China's Personal Information Protection Law effective on November 1.
The new Personal Information Protection law states that information handling must have a clear and reasonable purpose, lays out conditions under which companies can collect personal data, and offers guidelines for ensuring data is protected when transferred outside the country.
Didi provides 25 million rides a day in China.
Price Action: DIDI shares traded higher by 4.92% at $9.39 in the premarket session on the last check Thursday.

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DiDi Aims To Relaunch Apps In China: Report