Chinese Ministry of Transport summons freight service companies

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BEIJING, August 26 (Reuters)China’s Ministry of Transport summoned Didi Global’s cargo division, Full Truck Alliance Co Ltd, on Friday. YMM.NGOGOX Holdings 2246.HK and Huolala for “operational irregularities,” he said in a statement.

The ministry said in the statement that the four online logistics service platforms had problems with repeated billing, price competition and other irregularities that “damage the legitimate rights and interests of truck drivers”.

He said he urged 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, according to the ministry statement.

The four firms have already faced similar action from the ministry this year, after it also summoned them in January for “operating irregularities”.

Chinese authorities have engaged in an ongoing crackdown on internet platform companies, which began in earnest in late 2020.

Didi Global was a major target of the campaign. Earlier this year, China’s cyberspace regulator fined the company $1.2 billion for violating data regulations.

This punishment capped an investigation that had begun about a year earlier, as did the New York-listed company.

(Reporting by Josh Horwitz and the Beijing newsroom; editing by Raissa Kasolowsky and Jan Harvey)

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