China's DiDi Fears More Regulatory Action As It Continues To Lose Market Share: Report

DiDi Global Inc DIDIY fears further punishment from Chinese regulators after succumbing to China's sweeping crackdown, the Financial Times reports.

DiDi remained concerned over additional sanctions even after the Cyberspace Administration of China's imposition of a $1.18 billion penalty for violating the country's data security laws and compromising national security. 

Many expected the penalty to end its regulatory woes paving the way for smoother prospects in China.

China's Uber Technologies, Inc UBER equivalent lost its dominant position after China placed it under probe shortly after its $4.4billion blockbuster June IPO.

Also Read: DiDi Nears Regulatory Settlement After Year Long Battle; Is This Good News For Other China's Tech Stocks?

DiDi also had to delist from the NYSE in 2022 to appease China. The ongoing probe prevented DiDi from signing up new customers and drivers, making way for competitors, including T3 Chuxing.

Analysts saw the harsh CAC penalty, prompting other regulatory bodies to intervene with their punitive measures.

The Ministry of Industry and Information Technology could impose an additional fine on DiDi. A Beijing-based lawyer saw Didi succumbing to additional administrative penalties amounting to criminal prosecution pending improvement of its data security.

Didi's share of orders dropped by 900 bps to 72% in June, while T3's share rose by 1,100 bps to 16%. Meanwhile, DiDi worked to raise the proportion of its fully licensed drivers, deemed mandatory for Hong Kong listing.

Alibaba Group Holding Limited BABA, which accounted for the bulk of China's antitrust penalty in 2021, recently shared its plan to add Hong Kong as another primary listing venue to prop up its investor base.