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
107 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
107 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
107 months ago
Am I the only person mildly surprised that China has antitrust laws?
Score: 2 Votes (Like | Disagree)
5105973 Avatar
107 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 SE 4 Thumb 1

iPhone SE 4 With Apple's Own 5G Modem 'Confirmed' to Launch in March

Tuesday November 19, 2024 12:12 pm PST by
Barclays analyst Tom O'Malley and his colleagues recently traveled to Asia to meet with various electronics manufacturers and suppliers. In a research note this week, outlining key takeaways from the trip, the analysts said they have "confirmed" that a fourth-generation iPhone SE with an Apple-designed 5G modem is slated to launch towards the end of the first quarter next year. In line with previo...
airtag purple

AirTag 2 Rumored to Launch Next Year With These New Features

Sunday November 17, 2024 5:18 am PST by
Apple released the AirTag in April 2021, so it is now three over and a half years old. While the AirTag has not received any hardware updates since then, a new version of the item tracking accessory is rumored to be in development. Below, we recap rumors about a second-generation AirTag. Timing Apple is aiming to release a new AirTag in mid-2025, according to Bloomberg's Mark Gurman....
Magic Mouse Next to Keyboard

No, Apple CEO Tim Cook Didn't Say He Prefers Logitech's MX Master 3 Over the Magic Mouse

Sunday November 17, 2024 3:03 pm PST by
While the Logitech MX Master 3 is a terrific mouse for the Mac, reports claiming that Apple CEO Tim Cook prefers that mouse over the Magic Mouse are false. The Wall Street Journal last month published an interview with Cook, in which he said he uses every Apple product every day. Soon after, The Verge's Wes Davis attempted to replicate using every Apple product in a single day. During that...
Generic iOS 18 Feature Real Mock

Apple Releases iOS 18.1.1 and iPadOS 18.1.1 With Security Fixes

Tuesday November 19, 2024 10:10 am PST by
Apple today released iOS 18.1.1 and iPadOS 18.1.1, minor updates to the iOS 18 and iPadOS 18 operating systems that debuted earlier in September. iOS 18.1.1 and iPadOS 18.1.1 come three weeks after the launch of iOS 18.1. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Apple has also released iOS 17.7.2 for...
at t turbo indicator iphone 16 pro max v0 8hrh7w5f3w1e1

AT&T Turbo Indicator Showing Up in iPhone Status Bar for Subscribers

Wednesday November 20, 2024 3:42 am PST by
AT&T has begun displaying "Turbo" in the iPhone carrier label for customers subscribed to its premium network prioritization service, according to reports on Reddit. The new indicator seems to have started appearing after users updated to iOS 18.1.1, but that could be just coincidence. Image credit: Reddit user No_Highlight7476 The Turbo feature provides enhanced network performance through ...
iPhone 17 Slim Feature Single Camera 1 Redux

'iPhone 17 Air' Rumored to Surpass iPhone 6 as Thinnest iPhone Ever

Monday November 18, 2024 1:07 pm PST by
In a research note with Hong Kong-based investment bank Haitong today, obtained by MacRumors, Apple analyst Jeff Pu said he agrees with a recent rumor claiming that the so-called "iPhone 17 Air" will be around 6mm thick. "We agreed with the recent chatter of an 6mm thickness ultra-slim design of the iPhone 17 Slim model," he wrote. If that measurement proves to be accurate, there would be ...
bug security vulnerability issue fix larry

Make Sure to Update: iOS 18.1.1 and macOS Sequoia 15.1.1 Fix Actively Exploited Vulnerabilities

Tuesday November 19, 2024 10:52 am PST by
The iOS 18.1.1, iPadOS 18.1.1, and macOS Sequoia 15.1.1 updates that Apple released today address JavaScriptCore and WebKit vulnerabilities that Apple says have been actively exploited on some devices. With the JavaScriptCore vulnerability, processing maliciously crafted web content could lead to arbitrary code execution. The WebKit vulnerability had the same issue with maliciously crafted...