·Guangzhou Municipal Communications Commission's passenger management office interviewed about the network car companies below the cost price subsidy violation

On April 12th, the Guangzhou Municipal Traffic Commission's Passenger Transport Management Office conducted a further authoritative interpretation of the focus of the fourth-day interview on the Internet car rental platform enterprise on the 11th.
Q: Why did you conduct the 4th interview platform enterprise?
A: The main purpose of this interview is to require all platform companies to continue to increase efforts to clean up the remaining illegal operating networks, and to encourage companies to comply with national and provincial laws and regulations on unfair competition, and in accordance with the Ministry of Transport. The relevant principles of the "Interim Measures for the Administration of Online Appointment of Taxi Operating Services" for public consultation may not create a fair market environment for the purpose of crowding out competitors.
Q: Some social media mentioned in the news communication that the interview is a “restriction subsidy”, and is there any basis for restricting platform enterprise subsidies? Does the Municipal Communications Commission have the corresponding authority?
A: The subsidy itself is a manifestation of the independent behavior of the company. However, for the purpose of crowding out the competitors, the implementation of subsidies below the cost price is contrary to the relevant laws and regulations of the state and the basic spirit of fair competition in the market. Article 11 of the Law on Unfair Competition stipulates that “operators shall not sell goods at a price lower than the cost for the purpose of crowding out competitors”. The Ministry of Transport publicly solicits opinions on October 10th. The method (draft for comment) also has the relevant expression that “the service shall not be provided for the purpose of crowding out competitors and providing operating services at a price lower than the cost, resulting in unfair competition”.
“Limiting subsidies” is a misunderstanding. One of the purposes of this interview is to create a fair market environment. As early as this year's two sessions, the Minister of Communications Yang Chuantang clearly pointed out: "In the process of network car rental development, the subsidies implemented by the relevant enterprises are a short-term behavior to seize market share, and the traditional taxi industry has become unfair for some time. Competition.” As the competent department of the transportation industry, the Municipal Traffic Commission is responsible for maintaining the healthy and sustainable development of the taxi industry, and for the platform enterprises to adapt to the Ministry of Transport’s forthcoming new policy, in the process of this interview. The company issued an initiative to advocate “not to provide competitors with the purpose of crowding out competitors, to provide operational services at a price lower than the cost, resulting in unfair competition”.
Q: On the 11th, the transportation department asked the special car companies to cancel the concessions. Uber and other enterprises introduced new preferential measures on the 12th. What will the transportation department do?
A: The Municipal Communications Commission advocates a fair market competition environment. Most platform enterprises can respond positively, and creating a fair market competition environment requires the joint efforts of all platform enterprises. Next, the Municipal Communications Commission will work with relevant departments to jointly study the unfair competition of platform enterprises and maintain a fair and orderly market environment in accordance with the law.

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