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Schaefer said the fine against Didi is in line with past regulatory actions against Alibaba and Meituan, which were fined about four percent and three percent of their annual revenues, respectively, for unrelated alleged violations. вЂњThis probe has been preventing the company from moving forward in almost every other respect, and at this point, the company is likely to be willing to pay anything to get this albatross off their back.вЂќ

вЂњThough it seems counterintuitive, Didi is likely to be feeling pretty relieved,вЂќ Kendra Schaefer, a China tech analyst at Beijing-based policy research group Trivium, told Al Jazeera.

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The Beijing-based startup said in a statement on its Weibo account that it accepted the regulatorвЂ™s penalty and would reflect on its actions and how to improve its practices. The CAC said it also fined the DidiвЂ™s founder and Chief Executive Cheng Wei and President Jean Liu 1 million yuan ($148,000) each. The penalty amounts to more than four percent of DidiвЂ™s annual revenue, which came to $27.3bn in 2021. вЂњDidiвЂ™s illegal operations have brought serious security risks to the security of the countryвЂ™s key information infrastructure and data security,вЂќ the CAC said in a statement.

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The alleged breaches included illegally storing the personal information of more than 57 million drivers in an unsecure format and analysing passenger details such as mobile phone photos and facial recognition data without their knowledge or consent. The Cyberspace Administration of China (CAC) said on Thursday it fined the startup 8.026 billion yuan after finding it had illegally collected customer information since 2015 and handled data in a way that endangered national security. China has fined ride-hailing giant Didi almost $1.2bn for вЂњegregiousвЂќ violations of data security rules, capping a year-long probe that torpedoed the startupвЂ™s stock price and forced its delisting from the United States stock market.

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