Chinese regulator to probe Didi-Uber multi-billion-dollar merger deal

The Chinese market regulator is investigating the multi-billion-dollar merger of two ride-hailing businesses, Didi and Uber's China branch, in accordance with the anti-monopoly law and regulations, an official said on Friday.

Wu Zhenguo, head of the Anti-Monopoly Bureau of the State Administration for Market Regulation, told a press conference that the administration is working to comprehensively assess the deal's impact on competition and development of the industry.

China will crack down hard on monopolistic activity that damages consumer rights, Wu said.

Didi took over its US rival's China business in August 2016, sparking concern over potential monopoly. The ministry of commerce said a month later it was investigating the merger.

Didi announced in August, 2016 that it was taking over Uber China, in a deal that values the merged operations in China at USD 35 billion.

Uber took a 5.9 per cent stake in Didi, which in turn did not disclose the stake it will take in Uber. Uber China's on-demand mobility (ODM) service will continue to operate independently.

The government pays high attention to competition in the new economy and adopts an inclusive and prudent regulatory principle, Wu said.

"China gives full play to market competition for stronger innovative impetus in internet sectors, and works to strengthen regulatory rules and systems as well".

Wu pledged efforts to prevent market monopoly and barriers and to protect public interests, state-run Xinhua news agency reported.

He also stressed that China's anti-trust investigations are open and transparent, and that all market players, whether state-owned, private or foreign-funded, receive equal treatment.

Forty-one per cent of the anti-trust cases handled by the former State Administration for Industry and Commerce target state-owned firms, while less than 11 per cent involve foreign companies, Wu said.