Didi Chuxing is currently being investigated by Chinese regulatory authorities following the company's acquisition of Uber China. The investigators are seeking to uncover whether Didi violated Chinese anti-trust regulations.

China's commerce ministry launched the investigation after Didi Chuxing failed to declare the details of the transaction of its acquisition of Uber China. The acquisition, which amounts to about $36 million, is one of China's biggest-ever tech deals.

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Didi Chuxing allegedly did not declare the details of the deal to anti-trust authorities. The reason Didi did not declare the transaction is allegedly because that the company's revenue is below the required threshold needed for the review, according to The Wall Street Journal.

Didi now has a majority stake in the ride-hailing market in China. Didi is known for its aggressive campaign to increase its market share by subsidizing prices. This resulted in smaller firms dropping out of the business due to significant losses.

Didi's strategy eventually paid off when Uber decided that it could no longer compete in the Chinese market. This resulted in Didi's acquisition of Uber China; further broadening its hold of the ride-hailing market.

Ride-hailing companies have had a rough history in China, as the sector has attracted a lot of regulatory scrutiny. Ride-hailing services were illegal in China until July when the Chinese government finally approved it.

According to Tech Node, despite the regulatory attention that the Didi Chuxing-Uber China deal is currently receiving, the deal is likely to push through.

TagsDidi, Didi Chuxing, Uber, Uber China, ride-hailing, china