Key Takeaways From Chinese Regulatory Summon Of DiDi, Alibaba

Chinese regulators ordered car-hailing services run by DiDi Global Inc DIDI, Meituan MPNGY, and Alibaba Group Holding Ltd BABA to rectify instances of misconduct by December, Bloomberg reports.
The Ministry of Transport and multiple regulators, including the Cyberspace Administration of China and State Administration of Market Supervision, summoned and interviewed 11 ride-hailing firms for alleged hiring of unapproved drivers and vehicles, CNBC reports.
The regulators also rebuked the players for disrupting fair competition, user data protection anomalies, and hurting the interests of drivers and passengers.
The companies have to carry out self-inspections, fix those issues, and draft compliance plans before the end of the year.
The regulators forbade the ride-hailing platforms from enticing drivers through fake promotions or business risk transfer.
They also sought drivers' adequate rest and asked companies to reduce the commission per ride.
The companies have agreed to follow the regulatory orders. The regulators had already stopped Didi from signing up new users in July.
Various ride-hailing competitors tried to entice users with attractive discounts to dent Didi's 90% market share in China.
Price Action: BABA shares traded higher by 2.66% at $177.89, and DIDI stock is down 1.09% at $9.10 in the premarket session on the last check Thursday.