Didi-Uber merger requires proper review

The merger between two rival cab-hailing companies, Didi Chuxing and Uber China, has ended their costly battle in the ride-hailing market. Didi will take control of Uber China's brand, businesses, data and other assets in the country, yet both will continue to run independently.

But the Didi-Uber marriage is likely to create an unparalleled ride-hailing juggernaut that controls more than 90 percent of the market, fueling concerns about a de facto monopoly. Besides, the merger was announced without making a business declaration to the Ministry of Commerce, a legal requirement for all businesses with large-scale operations whose merger could result in a monopoly.

In the light of the country's anti-monopoly law designed to "protect fair market-oriented competition", the merged entity could take advantage of its dominant position to the detriment of users and competitors both.