China orders ride-hailing firms Didi, Meituan to stop 'disorderly expansion'

BEIJING: Chinese regulators have summoned ride-hailing giant Didi Chuxing and ten other car platforms to demand they cease "disorderly expansion" and "vicious competition" tactics, the government said Thursday, amid a national crackdown on the tech industry.

China has in recent months tightened its scrutiny of its largest tech firms in sectors ranging from e-commerce to entertainment, launching antitrust probes and rolling out strict regulation.

The companies, including the ride-hailing arm of major services app Meituan, were told by regulators Wednesday that the industry suffered from poor behaviour including recruiting unqualified drivers and "shifting the risks of operations onto drivers," according to the transport ministry statement.

The companies were ordered to investigate internal problems and "immediately rectify" poor behaviour, with regulators stressing that ride-hailing platforms must also reduce the cut they take from transactions and protect passengers' personal data.