Apple-Backed Didi Chuxing Under Antitrust Investigation After Uber China Acquisition

Discussion in 'iOS Blog Discussion' started by MacRumors, Sep 2, 2016.

  1. MacRumors macrumors bot

    MacRumors

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    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."

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    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.

    Article Link: Apple-Backed Didi Chuxing Under Antitrust Investigation After Uber China Acquisition
     
  2. GrumpyMom macrumors 604

    GrumpyMom

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    I would say the Chinese regulators are not merely "flexing their muscles" but legitimately doing their jobs this time.
     
  3. DavisEngeler macrumors member

    DavisEngeler

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    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.
     
  4. macduke macrumors G3

    macduke

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    #4
    It's still word salad, with startup dressing.

    --

    I thought monopolies were a good thing in China?
     
  5. GrumpyMom macrumors 604

    GrumpyMom

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    #5
    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.
     
  6. BeefCake 15 macrumors 65816

    BeefCake 15

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    China is didi chuxing Apple with this investigation
     
  7. phairphan macrumors 6502a

    phairphan

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    Am I the only person mildly surprised that China has antitrust laws?
     
  8. Nunyabinez macrumors 68000

    Nunyabinez

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    #8
    Not likely, but that's because most people still believe that the Chinese economy is still 100% communistic. Over the past decade with the re-acquisition of Hong Kong and a large number of "special economic zones" there is a huge swing to a more capitalistic structure. Of course this is all overseen by the communist party, but there are probably more entrepreneurs in China than in the U.S.
     
  9. HiVolt macrumors 6502a

    HiVolt

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    #9
    I am more than mildly amused that they have that, given that their Chinese companies are prolific at copying, copyright infringement and corporate espionage, and the government doesnt bat an eye...

    Maybe it has something to do with Apple'x investment in that Didi thing...

    I think Timmy and his cronies are trying to get a stronger foothold in China, and China isn't giving in.
     
  10. skinned66 macrumors 65816

    skinned66

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    #10
    It looks like th appropriate palms were not appropriately greased.
     

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