Chinese market regulators have launched an antitrust probe into ride-hailing giant Didi Chuxing, days after the company started the procedures for what could be the biggest initial public offering (IPO) in the US this year, reported Reuters.
The probe is the most recent in a wave of clampdowns on China’s so-called “platform” companies, including Alibaba and Tencent.
Reuters reported the news based on information from three people with knowledge of the matter. According to two of the three, China’s market regulator, the State Administration for Market Regulation (SAMR), is investigating whether Didi used any competitive practices that squeezed out smaller rivals unfairly.
All three sources said that the regulator is also examining whether the pricing mechanism used by Didi’s core ride-hailing business is transparent enough.