China's transport ministry summons cargo service firms (updated)

Full Truck Alliance

26/08/2022 12:09

(Adds detail from announcement)
    BEIJING, Aug 26 (Reuters) - China's transport ministry on
Friday summoned Didi Global's cargo division, Full Truck
Alliance Co Ltd  YMM.N , GOGOX Holdings  2246.HK  and Huolala
over "operational irregularities", it said in a statement.
    The ministry said in the statement that the four online
logistics service platforms had problems with repeat charges,
price competition, and other irregularities which "damage the
legitimate rights and interests of truck drivers".
    It said it had urged the platforms to improve the
transparency of their business operations, implement reforms to
reduce price competition, and maintain a fair environment for
market competition.
   The companies said they would comply with the recommendations
made, the ministry statement said.
   The four firms have already seen similar action by the
ministry this year, after it also summoned them in January for
"operational irregularities."  urn:newsml:reuters.com:*:nB9N2ZO00V
    Chinese authorities have engaged in ongoing crackdown on
internet platform companies, which began in earnest in late
2020.
    Didi Global has been a major target of the campaign. Earlier
this year China's cyberspace regulator levied a $1.2 billion
fine on the company for violating data regulations.
    That punishment capped a probe that began roughly one year
earlier, just as the company listed in New York.

 (Reporting by Josh Horwitz and the Beijing newsroom; Editing by
Raissa Kasolowsky and Jan Harvey)
 ((Ella.Cao@thomsonreuters.com;))