3 more Chinese tech firms under CAC investigation for data violations

By Akshay Kedari  | Date: 2021-07-06

3 more Chinese tech firms under CAC investigation for data violations

After the latest crackdown on Didi, the Cyberspace Administration of China (CAC) has reportedly opened cybersecurity probes into three additional Chinese technology companies.

These include the online recruitment app Boss Zhipin backed by tech giant Tencent, and Huochebang & Yunmanman, two subsidiaries of the online commercial freight platform, Full Truck Alliance Co.

The latest regulatory probe comes after the CAC mandated Chinese app stores to disable new downloads of online ride-hailing platform Didi, just days after its initial public offering (IPO) in the U.S.

The regulator claimed that Didi had illegally collected users’ data and ordered the company to fix the issues.

The CAC has said that the investigation is being conducted with the aim of ‘preventing national data security risks.’ These companies will not be allowed to register new users during the cybersecurity review.

If reports are to be believed, the Chinese government has been increasingly focusing on its attempt to regulate data flow, in a broader attempt to manage the country’s technology sector which has become largely unchecked over the past few years.

In June this year, Beijing passed a new Data Security Law that provides regulations on how companies are to collect, store and use data.

It is also worth noting that Beijing has been actively addressing financial technology and antitrust regulations. Earlier this year, multinational technology company Alibaba Group was fined USD 2.8 billion in an anti-monopoly probe while shopping platform Meituan is currently being investigated on the same matter.

Market experts have cited that, shares of major tech companies listed on the Hong Kong stock exchange, including Meituan and Tencent were trading at lower prices on Monday morning.

However, U.S. stock markets remain closed on Mondays, thus the share prices are not expected to reflect investor reactions until Tuesday.

Source Link –

https://www.cnbc.com/2021/07/05/china-opens-cybersecurity-probe-into-full-truck-alliance-boss-zhipin.html

 

 

About Author

Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More >>

More News By Akshay Kedari

Interfor Corporation acquires 100% equity interest in Chaleur Forest Products

Interfor Corporation acquires 100% equity interest in Chaleur Forest Products

By Akshay Kedari

Following this funding, Interfor's long-term debt will hold a weighted average interest of 5.30% Interfor registered a Net Debt to the Invested Capital ratio of nearly 10% as of October 31, 2022 Interfor Corporation, one of the world...

ESR's ARA and Export-Import Bank of China partner in a deal worth US$1B

ESR's ARA and Export-Import Bank of China partner in a deal worth US$1B

By Akshay Kedari

Leading real estate services and investment company, ESR Group Limited, has recently announced that its exclusively-owned subsidiary, ARA and the Export-Import Bank of China have inked a breakthrough collaboration in a deal worth USD 1 billion infras...

Circularise nabs $11M to bring circular economy to industrial supply chains

Circularise nabs $11M to bring circular economy to industrial supply chains

By Akshay Kedari

Leading software platform, Circularise recently announced that it has raised $11.3 million (€11 million) in funding as part of its Series A round in a bid to advance its mission to bring a circular economy to industrial supply chains. The fun...

Sebi approves Adani Group’s proposal for additional 26% stake in NDTV

Sebi approves Adani Group’s proposal for additional 26% stake in NDTV

By Akshay Kedari

Adani Group, an Indian conglomerate, recently opened an offer to acquire an additional 26% share in New Delhi Television (NDTV), which was positively accepted by the Indian market regulator Sebi. The deal, worth USD 60.78 million, is expected to b...

ADB and Indonesia team up on coal power plant retirement contract

ADB and Indonesia team up on coal power plant retirement contract

By Akshay Kedari

The Asian Development Bank and Indonesia, along with a private power company announced partnering to refinance and retire a coal-fired power plant under a groundbreaking carbon emissions reduction program. According to reliable sources, West Java&...