Chinese intelligent transport services company Didi has canceled plans to enter the British market amid concerns about how it will handle sensitive passenger data.
Bloomberg news agency indicated that Didi had obtained a license to operate in several British cities as part of its plan to compete with the American company Uber Technologies, but there were indications that the Chinese company would delay its plans for at least 12 months.
Bloomberg added that Didi is currently facing pressure from the Chinese government, which has led to a decline in its market value by more than half since its shares were floated on the New York Stock Exchange last June at a value of 68 billion dollars.
The Chinese authorities had forced Didi to remove its service application from app stores and imposed restrictions on the inclusion of new users in light of investigations by the authorities in light of concerns about the protection of user data in China.
And the British newspaper Telegraph indicated that members of the British House of Commons warned that allowing Didi to operate in Britain could mean that the personal data of users in Britain and their movements would be transferred to the Chinese government because the Chinese national security law obliges companies to provide such data when requested.
The Chinese participatory transport company denied what was reported in the Wall Street Journal, about its intention to write off the public offering in the American markets, which took place two weeks ago, and to return to work as a private company to satisfy the Chinese authorities.
Didi shares lost more than 36% of the offering price after Beijing announced an investigation into the privacy of users’ data, which resulted in the company’s application being removed from Chinese app stores.
Bloomberg reported last week that Chinese regulators are considering a range of penalties for the company, including forcing it to delist.