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China orders ride-hailing firms to rectify irregular practices

This file photo taken on July 2, 2021 shows a driver using the Didi Chuxing ride-hailing app on his smartphone while driving along a street in Beijing. (Jade GAO / AFP)

BEIJING -Chinese regulators have summoned 11 ride-hailing service platforms for talks over their irregular practices, ordering the firms to examine their operations and immediately rectify non-compliant behaviors.

Some platform companies have used multiple marketing tactics to engage in vicious competition, and also taken part in illegal operations such as the hiring of unlicensed drivers, according to several regulatory authorities including the Ministry of Transport and the Office of the Central Cyberspace Affairs Commission.

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The 11 firms, including Didi Chuxing and the ride-hailing service of Meituan, were ordered to cease recruiting non-compliant cars and drivers, stop vicious competition and disorderly expansion, and ban practices that exclude or restrict competition.

The authorities also called on the platforms to regulate their pricing mechanisms to reduce the commission they take from drivers and adopt necessary security measures to protect user information.

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