Taxi hailing app Didi Dache is under investigation for unfair competition because it provided prizes worth more than 5,000 yuan ($800) in a lottery promotion, the Beijing News newspaper reported over the weekend.
The Haidian branch of Beijing Administration for Industry and Commerce found that a lottery promotion started by Didi Dache in April offered expensive prizes to users including Audi cars, the report said.
However, China restricts lottery promotion prizes to no more than 5,000 yuan, in a bid to avoid unfair competition, the report said.
The Haidian industry administration's investigation showed that there was another similar lottery promotion launched by Didi Dache that ran from December 2013 to January 2014, and the company admitted it had not known about the restriction before, according to the report.
According to the anti-unfair competition law, the company may be fined for the excessively valued prizes in its lottery promotion, with the possible amount ranging from 10,000 yuan to 100,000 yuan, the report said.
Taxi app Didi Dache orders fall 40%
2014-05-22Shanghai taxi firms launch rival booking app
2014-05-21Drop in taxi app bookings as incentives cut
2014-05-20Dead end for taxi-app subsidies
2014-05-17Didi Taxi app eyes IPO to cement position
2014-05-15Taxi app firms think of new incentives
2014-04-10Taxi app found using private cars
2014-02-21Copyright ©1999-2018
Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.