Announcing Agent Commander - The First Integrated solution from Veeam + Securiti.ai enabling the scaling of safe AI agents

View
Veeam

The Funniest Evening at RSA with Hasan Minhaj

Hasan Minhaj Request ticket
View

China’s Ride-Hailing Behemoth Didi Fined $1.2 Billion For Violating Cybersecurity Laws

Published August 19, 2022
Author

Muhammad Faisal Sattar

Director of Product Legal & Global Data Compliance

FIP, CIPT, CIPM, CIPP/Asia

Listen to the content

After a year-long investigation, China's cybersecurity watchdog, Cyberspace Administration of China (CAC), fined ride-hailing giant Didi Global $1.2 billion, finding that it had breached the country's laws governing data security and the protection of personal information.

In an unprecedented step, the CAC also held Didi’s President Jean Liu and Chief Executive Cheng Wei accountable for the offenses and issued fines of $148,000 each, thereby setting an example for the leaders in the industry to take proactive cybersecurity measures or risk penalties. CAC justified the fine by stating that Didi had failed to correct practices of sustained and illegal overcollection of sensitive and personal data and inadequate security.

CAC found conclusive evidence that Didi had committed violations of an “egregious nature” and charged Didi with illegally keeping more than 57 million driver IDs in plain text instead of a more secure format.

CAC added that its examination revealed that since 2015 Didi had collected data on users’ biometrics, age, residents and employment locations, and professional and family personal background information without providing an accurate and clear disclosure of its purpose for doing so, along with illegally collecting user location and app usage data.

Additionally, it also illegally gathered millions of user records, such as obtaining passenger information without their consent or knowledge, including images from their smartphones and facial recognition data.

In its statement, the CAC claimed that Didi had illegally processed 64.7 billion pieces of personal data since its first infringement in 2015.

The CAC began looking into Didi after it enlisted itself on the New York Stock Exchange in June 2021, despite requests from the CAC to postpone the listing, citing concerns about disclosing personal information.

According to the CAC, "Didi's illegal operations have brought serious security risks to the security of the country's key information infrastructure and data security".

After falling under regulatory inspection, Didi lost 80% of its market worth, or more than $60 billion in value, becoming one of the most prominent casualties of Beijing's extensive crackdown on private business.

Didi’s Non-Compliance Penalty

In this case, the fine imposed represents more than 4% of Didi's annual revenue, which was $27.3 billion in 2021. In addition, the CAC demanded that Didi halt registering new users and remove 25 of its apps from app stores, claiming public interest and national security.

Didi Fined – $1.2 Billion
Didi’s President Fined – $148,000
Didi’s CEO Fined – $148,000

The penalty imposed on Didi is consistent with penalties in previous regulatory proceedings taken against Alibaba and Meituan, which were penalized with fines of 4% ($2.75 billion) and 3% ($527 million) of their respective annual revenues for unrelated claimed offenses.

Didi’s Response

The Beijing-based firm acknowledged the regulator's fine in a statement posted on its Weibo account and said it would consider its next course of action and measures to strengthen its procedures. Additionally, the company sincerely thanked the competent authorities for their inspection and guidance and the public for their criticism and supervision.

Beijing's concern over the enormous amounts of personal information that internet companies are gathering, and the possibility of a leak of such personal data internationally that could jeopardize national security, is reflected in the penalty imposed on Didi.

According to security analysts, Chinese officials have been worried that, in Didi's case, personal information about important people and sensitive locations may have leaked from its databases.

This is significant partly due to national security concerns in line with the increased US-China tech competition. Therefore, Beijing now wants internet companies with more than one million users to go through a data security review before going public overseas.

How Securiti Can Help

Securiti enables organizations to discover, analyze and protect large datasets. It offers effective and automated Data Mapping, Incident Response and Management, and Data Intelligence that help organizations gain visibility to their datasets, identify datasets as a result of security incidents and achieve regulatory compliance.

Securiti combines reliability, intelligence, and simplicity, working on the PrivacyOps framework to allow end-to-end automation for organizations. Securiti can help you stay compliant with the PIPL, as well as other privacy and security regulations all over the world.

Ask for a demo to understand how Securiti can help you achieve compliance.

Analyze this article with AI

Prompts open in third-party AI tools.
Join Our Newsletter

Get all the latest information, law updates and more delivered to your inbox


Share

More Stories that May Interest You
Videos
View More
Mitigating OWASP Top 10 for LLM Applications 2025
Generative AI (GenAI) has transformed how enterprises operate, scale, and grow. There’s an AI application for every purpose, from increasing employee productivity to streamlining...
View More
Top 6 DSPM Use Cases
With the advent of Generative AI (GenAI), data has become more dynamic. New data is generated faster than ever, transmitted to various systems, applications,...
View More
Colorado Privacy Act (CPA)
What is the Colorado Privacy Act? The CPA is a comprehensive privacy law signed on July 7, 2021. It established new standards for personal...
View More
Securiti for Copilot in SaaS
Accelerate Copilot Adoption Securely & Confidently Organizations are eager to adopt Microsoft 365 Copilot for increased productivity and efficiency. However, security concerns like data...
View More
Top 10 Considerations for Safely Using Unstructured Data with GenAI
A staggering 90% of an organization's data is unstructured. This data is rapidly being used to fuel GenAI applications like chatbots and AI search....
View More
Gencore AI: Building Safe, Enterprise-grade AI Systems in Minutes
As enterprises adopt generative AI, data and AI teams face numerous hurdles: securely connecting unstructured and structured data sources, maintaining proper controls and governance,...
View More
Navigating CPRA: Key Insights for Businesses
What is CPRA? The California Privacy Rights Act (CPRA) is California's state legislation aimed at protecting residents' digital privacy. It became effective on January...
View More
Navigating the Shift: Transitioning to PCI DSS v4.0
What is PCI DSS? PCI DSS (Payment Card Industry Data Security Standard) is a set of security standards to ensure safe processing, storage, and...
View More
Securing Data+AI : Playbook for Trust, Risk, and Security Management (TRiSM)
AI's growing security risks have 48% of global CISOs alarmed. Join this keynote to learn about a practical playbook for enabling AI Trust, Risk,...
AWS Startup Showcase Cybersecurity Governance With Generative AI View More
AWS Startup Showcase Cybersecurity Governance With Generative AI
Balancing Innovation and Governance with Generative AI Generative AI has the potential to disrupt all aspects of business, with powerful new capabilities. However, with...

Spotlight Talks

Spotlight 50:52
From Data to Deployment: Safeguarding Enterprise AI with Security and Governance
Watch Now View
Spotlight 11:29
Not Hype — Dye & Durham’s Analytics Head Shows What AI at Work Really Looks Like
Not Hype — Dye & Durham’s Analytics Head Shows What AI at Work Really Looks Like
Watch Now View
Spotlight 11:18
Rewiring Real Estate Finance — How Walker & Dunlop Is Giving Its $135B Portfolio a Data-First Refresh
Watch Now View
Spotlight 13:38
Accelerating Miracles — How Sanofi is Embedding AI to Significantly Reduce Drug Development Timelines
Sanofi Thumbnail
Watch Now View
Spotlight 10:35
There’s Been a Material Shift in the Data Center of Gravity
Watch Now View
Spotlight 14:21
AI Governance Is Much More than Technology Risk Mitigation
AI Governance Is Much More than Technology Risk Mitigation
Watch Now View
Spotlight 12:!3
You Can’t Build Pipelines, Warehouses, or AI Platforms Without Business Knowledge
Watch Now View
Spotlight 47:42
Cybersecurity – Where Leaders are Buying, Building, and Partnering
Rehan Jalil
Watch Now View
Spotlight 27:29
Building Safe AI with Databricks and Gencore
Rehan Jalil
Watch Now View
Spotlight 46:02
Building Safe Enterprise AI: A Practical Roadmap
Watch Now View
Latest
View More
Introducing Agent Commander
The promise of AI Agents is staggering— intelligent systems that make decisions, use tools, automate complex workflows act as force multipliers for every knowledge...
Risk Silos: The Biggest AI Problem Boards Aren’t Talking About View More
Risk Silos: The Biggest AI Problem Boards Aren’t Talking About
Boards are tuned in to the AI conversation, but there’s a blind spot many organizations still haven’t named: risk silos. Everyone agrees AI governance...
Largest Fine In CCPA History_ What The Latest CCPA Enforcement Action Teaches Businesses View More
Largest Fine In CCPA History: What The Latest CCPA Enforcement Action Teaches Businesses
Businesses can take some vital lessons from the recent biggest enforcement action in CCPA history. Securiti’s blog covers all the important details to know.
View More
AI & HIPAA: What It Means and How to Automate Compliance
Explore how the Health Insurance Portability and Accountability Act (HIPAA) applies to Artificial Intelligence (AI) in securing Protected Health Information (PHI). Learn how to...
Building A Secure AI Foundation For Financial Services View More
Building A Secure AI Foundation For Financial Services
Access the whitepaper and discover how financial institutions eliminate Shadow AI, enforce real-time AI policies, and secure sensitive data with a unified DataAI control...
Indiana, Kentucky & Rhode Island Privacy Laws View More
Indiana, Kentucky & Rhode Island Privacy Laws: What Changed & What Businesses Should Do Now
A breakdown of new data privacy laws in Indiana, Kentucky, and Rhode Island—key obligations, consumer rights, enforcement timelines, and what businesses should do now.
Agentic AI Security: OWASP Top 10 with Enterprise Controls View More
Agentic AI Security: OWASP Top 10 with Enterprise Controls
Map the OWASP Top 10 risks for agentic AI to enterprise-grade controls, identity, data security, guardrails, monitoring, and governance to stop autonomous AI abuse.
View More
Strategic Priorities For Security Leaders In 2026
Securiti's whitepaper provides a detailed overview of the three-phased approach to AI Act compliance, making it essential reading for businesses operating with AI. Category:...
View More
Take the Data Risk Out of AI
Learn how to prepare enterprise data for safe Gemini Enterprise adoption with upstream governance, sensitive data discovery, and pre-index policy controls.
View More
Navigating HITRUST: A Guide to Certification
Securiti's eBook is a practical guide to HITRUST certification, covering everything from choosing i1 vs r2 and scope systems to managing CAPs & planning...
What's
New