Didi Chuxing Faces Regulatory Backlash and Worsening Public Opinion in China... Branded as a 'Traitor'

China Market Supervision Administration Uncovers 8 Antitrust Violations by Didi Chuxing
Imposes Total Fine of 4 Million Yuan, 500,000 Yuan per Case

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Didi Chuxing, China's largest ride-sharing service company (the Chinese version of Uber), which has been under fire from Chinese regulatory authorities due to its IPO on the US stock exchange, has been fined 4 million yuan (approximately 700 million KRW).

[Image source=Reuters Yonhap News]

According to Chinese economic media Caixin on the 8th, the State Administration for Market Regulation (SAMR) uncovered a total of 22 antitrust law violations among five Chinese internet companies including Didi Chuxing, Alibaba, Tencent, Meituan, and Suning, and imposed fines of 500,000 yuan per case.

Among the 22 cases, Didi Chuxing had the most with 8 cases, followed by Alibaba with 6, Tencent with 5, Suning with 2, and Meituan with 1.

Caixin reported that Didi Chuxing-affiliated companies violated antitrust laws during the process of acquiring shares in other companies, resulting in administrative penalties of 500,000 yuan per case. Caixin also added that Didi Chuxing had previously been investigated twice by Chinese authorities due to lax internet security management and illegal collection of personal information.

Public opinion toward Didi Chuxing is also harsh. The Global Times pointed out that the fine was related to violations of the "concentration of business" clause of the antitrust law during mergers and other processes. The Global Times evaluated that since Didi Chuxing's new customer acquisition has been halted due to data security and privacy issues, the fine imposed for the antitrust law violation demonstrates the firm stance of Chinese regulatory authorities.

Professor Li Junhui of China University of Political Science and Law said, "The imposition of fines on the violations confirmed by the State Administration for Market Regulation once again shows the regulatory authorities' firm attitude toward enforcing antitrust laws," adding, "In the future, internet companies will comply with their legal obligations on their own."

There are also voices calling for the delisting of Didi Chuxing. Dong Xiangofeng, senior researcher at the Central Financial Research Institute of Renmin University, stated regarding the investigation of Didi Chuxing, "This is a measure demonstrating the Chinese authorities' determination to strengthen personal information and data protection, as well as a timely step to build a crucial firewall for national security overall," and advocated for Didi Chuxing's delisting from the US stock market.

The New York Times (NYT) reported on the 7th (local time) that China is punishing Didi Chuxing not only through official regulatory measures but also by mobilizing public opinion. It also reported that a hashtag calling for the "ban of the Didi Chuxing app" has appeared within China.

The NYT reported that the article with this hashtag, first posted by the Chinese Communist Party's official newspaper People's Daily, recorded 1 billion views on Weibo (the Chinese version of Twitter) within a day. The article received harsh comments including terms like "traitor" and "America's lapdog." Additionally, posts criticizing Liu Chuanzhi, founder of Chinese computer company Lenovo, were also uploaded. Liu Chuanzhi is the father of Liu Qing, CEO of Didi Chuxing.

This content was produced with the assistance of AI translation services.