The Chinese authorities will conclude their investigation into taxi service Didi this week. This is reported by the American business newspaper The Wall Street Journal.
Didi was suspected, among other things, of illegally collecting personal data from users and of violating competition rules.
Didi, for example, would have pushed smaller competitors out of the market in unfair ways. Due to the investigation, app stores had to remove Didi’s app. But according to The Wall Street Journal, Didi’s app should return to app stores this week. Didi is the largest player in the taxi market in China.
Didi will reportedly receive a hefty fine from the Chinese authorities and the company will have to give 1 percent of the shares to the government, giving it more control over the company. Didi’s approach by China is part of a wider campaign by Beijing to curb the country’s powerful technology sector. For example, the online store Alibaba was previously fined for abuse of power.
Didi is in the process of delisting in New York and is working on an IPO in Hong Kong. The opening indicators point to a price jump for Didi on Wall Street of about 50 percent.