China-based ride-hailing service Didi Chuxing is under an antitrust investigation, spearheaded by China’s Ministry of Commerce, following Didi's acquisition of Uber's Chinese operations earlier in the summer (via The Wall Street Journal). The Ministry of Commerce said today that it's opened an investigation "after it received questions over whether the ride-hailing deal complied with the nation’s antitrust law."

The investigation has reportedly been ongoing for a while now, as the commerce ministry has held two meetings surrounding the deal between Didi and Uber. According to transcripts of the meetings, the focus has been on asking Didi why it didn't apply for antitrust review before moving forward with the deal. When its acquisition of Uber went public, Didi claimed it didn't need to apply to antitrust regulators "because UberChina’s revenue didn’t reach the 400 million yuan ($60 million) “turnover” threshold triggering an antitrust review."

didi_uber_icons

At issue is the vague word “turnover” in China’s antimonopoly law, which could be interpreted as either revenue or transaction volume, China accountants say. UberChina’s transaction volume almost certainly exceeds 400 million yuan, but Uber counts only a fraction of each fare as part of its revenue. That is because the company—like other “platforms” such as Groupon Inc.—says it is only a middleman and that it only passes along fares from riders to drivers, taking a thin cut.

Many professionals looking into the case still believe that the Didi/Uber deal will go through in the end, with one ministry spokesman saying that, right now, they're just trying "to understand the online ride-hailing business model and the sector’s competitive environment." According to Lester Ross, a Beijing-based attorney with U.S. law firm WilmerHale, Chinese regulators are simply "flexing their muscles" following public fear that a consolidation of ride-hailing firms would result in higher fares.

Apple's connection to the investigation lies in its own $1 billion investment into Didi Chuxing earlier in May, which gave it access to data and expertise on electric and autonomous car technology, as well as a foot in the door with the Chinese investment community. Although still a widely-known rumor, the Didi investment got tied into Apple's car-related Project Titan, which is an "open secret" within Silicon Valley. In July, it was reported that Apple hired a new chief on its Apple Car project, Bob Mansfield, with a shift in focus now on autonomous driving.

Top Rated Comments

macduke Avatar
115 months ago
When I first woke up, the headline sounded like complete word salad. It took me a minute to figure out what in the world it was saying.
It's still word salad, with startup dressing.

--

I thought monopolies were a good thing in China?
Score: 4 Votes (Like | Disagree)
DavisEngeler Avatar
115 months ago
Apple-Backed Didi Chuxing Under Antitrust Investigation After Uber China Acquisition
When I first woke up, the headline sounded like complete word salad. It took me a minute to figure out what in the world it was saying.
Score: 3 Votes (Like | Disagree)
phairphan Avatar
115 months ago
Am I the only person mildly surprised that China has antitrust laws?
Score: 2 Votes (Like | Disagree)
5105973 Avatar
115 months ago
When I first woke up, the headline sounded like complete word salad. It took me a minute to figure out what in the world it was saying.
I have not had my morning tea or coffee yet. I followed just enough to think to myself that if I were Tim Cook I'd wish I would wake up and realize the whole thing...Didi, Hanging out with Eddy and Dre, Planet of the Apps, Tweets from Kanye, spats with Taylor, giving away gold apple watches to celebrities who don't even know what they are, fights with the EU...was all a really bad dream and that I was still running a computer company.
Score: 1 Votes (Like | Disagree)

Popular Stories

iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 14 New Features

Friday July 4, 2025 1:05 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are just over two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:Apple logo repositioned: Apple's logo may have a lower position on the back of the iPhone 17 Pro models, compared to previous...
iphone 16 pro models 1

Here's How the iPhone 17 Pro Max Will Compare to the iPhone 17 Pro

Saturday July 5, 2025 1:00 pm PDT by
Apple should unveil the iPhone 17 series in September, and there might be one bigger difference between the Pro and Pro Max models this year. As always, the Pro Max model will be larger than the Pro model:iPhone 17 Pro: 6.3-inch display iPhone 17 Pro Max: 6.9-inch displayGiven the Pro Max is physically larger than the Pro, it has more internal space, allowing for a larger battery and...
airpods pro 2

AirPods Pro 3 to Help Maintain Apple's Place in Earbud Market Amid Increasing Low-Cost Competition

Thursday July 3, 2025 7:25 am PDT by
Apple's position as the dominant force in the global true wireless stereo (TWS) earbud market is expected to continue through 2025, according to Counterpoint Research. The forecast outlines a 3% year-over-year increase in global TWS unit shipments for 2025, signaling a transition from rapid growth to a more mature phase for the category. While Apple is set to remain the leading brand by...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Max Battery Capacity Leaked

Thursday July 3, 2025 5:40 am PDT by
The iPhone 17 Pro Max will feature the biggest ever battery in an iPhone, according to the Weibo leaker known as "Instant Digital." In a new post, the leaker listed the battery capacities of the iPhone 11 Pro Max through to the iPhone 16 Pro Max, and added that the iPhone 17 Pro Max will feature a battery capacity of 5,000mAh: iPhone 11 Pro Max: 3,969mAh iPhone 12 Pro Max: 3,687mAh...
Apple Watch Ultra Night Mode Screen

Apple Watch Ultra 3 Launching Later This Year With Two Key Upgrades

Wednesday July 2, 2025 1:13 pm PDT by
The long wait for an Apple Watch Ultra 3 appears to be nearly over, and it is rumored to feature both satellite connectivity and 5G support. Apple Watch Ultra's existing Night Mode In his latest Power On newsletter, Bloomberg's Mark Gurman said that the Apple Watch Ultra 3 is on track to launch this year with "significant" new features, including satellite connectivity, which would let you...
apple silicon mac lineup 2024 feature purple m5

Apple's Upcoming Macs Listed in New Report

Thursday July 3, 2025 9:09 am PDT by
AppleInsider's Marko Zivkovic today shared a list of alleged identifiers for future Mac models, which should roll out over the next year or so. The report does not reveal anything too surprising, but it does serve as further evidence that Apple is seemingly working on new models of every Mac, including the MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, and Mac Pro. Apple is...
Future M5 Chip Devices

M5 Chip Rumored to Debut in These Five Apple Products Later This Year

Friday July 4, 2025 9:14 am PDT by
Apple's next-generation M5 chip is expected to debut in five new products later this year, including the iPad Pro, Vision Pro, MacBook Pro, Mac mini, and iMac. M5 chips will reportedly be manufactured with TSMC's latest third-generation 3nm process, which should result in slight performance and power efficiency improvements over M4 chips fabricated with its second-generation 3nm process. ...