China launches anti-monopoly investigation against Didi taxi service

China’s State Agency for Market Regulation (GURR) has launched an investigation into Uber’s local counterpart, online taxi service Didi Chuxing. This was reported on Thursday by Reuters, citing sources familiar with the situation. According to them, the department is checking whether Didi used any non-competitive practices to squeeze out smaller services from the market, and whether the pricing mechanism operating in its taxi ordering service is transparent enough. Didi and GURR did not comment on the information about the investigation.

This investigation was the latest action by the Chinese authorities against local technology corporations in recent years. In April, GURR fined Alibaba a record $ 2.8 billion for abusing its market position and forcing consumers to use its services “no choice.” Shortly thereafter, the agency issued a warning to 34 of the country’s top technology companies, including Didi, in which it demanded that “anti-competitive practices” be eliminated within a month to prevent “a repeat of the Alibaba situation.”

The investigation into Didi began as the company prepares to hold an IPO in the United States. Such plans of the service became known in March, it is expected that this placement, during which Didi can be estimated at $ 100 billion, will become one of the largest in recent years. Didi released a prospectus last week. It is unclear how the company’s investigation could affect the placement.

Yana Rozhdestvenskaya

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