Image uses photo from Pixabay.
China’s Ministry of Commerce (MOFCOM) said today it’s launching a probe into the planned merger of Didi Chuxing with Uber’s China unit.
A ministry spokesperson tells Reuters that it’s due to anti-monopoly concerns about the US$35 billion tech company that will result from the merger and which will totally dominate car-hailing and taxi-booking in the China market.
Didi is no stranger to being a monopoly player. In early 2015, Didi acquired its main rival, Kuaidi Dache, to form a united company that could take on Uber’s entrance into China. That gave Didi a total stranglehold on app-based taxi-hailing in the country. MOFCOM had no problem with that merger.
Editing by Terence Lee
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