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Uber, the fast-growing online car sharing service, has been banned from taking bookings in the Netherlands via its smartphone app where it could face fines of up to €100,000 (RM428,650).
Uber said it would appeal against the decision by the Trade and Industry Appeals Tribunal in The Hague yesterday, which ordered Uber to stop providing the service known as UberPop, saying broke a law requiring that drivers have a special licence.
Uber, which was been valued at around US$40 billion (RM139.6 billion) ahead of a planned initial public offer, could be fined a total of €100,000 . Drivers could also face fines of €10,000 for each violation, up to a maximum of €40,000, the court said.
“This is only the first step in a long-running legal battle,” Uber said in a statement. Uber had asked the Dutch court to overturn a government-imposed ban and fines for use of UberPop, the smartphone application used to arrange rides.
“We believe were are offering a service within the spirit of the law. We will continue to offer safe, competitive, quality services to consumers,” said spokesman Thomas van Oortmerssen.
Uber said that yesterday’s Dutch ruling did not address the underlying legality of UberPop and that the decision was based on a law from 2000, when there were no smartphones.
“The law is out of date and that means the technological service we offer had not yet been invented,” Van Oortmerssen said. “The law needs to be changed to make it possible and it is now up to the politicians to do that.”
Launched in California four years ago, the service has rapidly become popular in a number of countries because it often undercuts established taxi and minicab services.
However, taxi drivers across Europe say Uber breaks local taxi rules and violates licensing, insurance and safety regulations. It has faced legal action in Germany and a number of European capitals.
Uber service was also banned in New Delhi yesterday after a female passenger accused one of its drivers of rape.
In the US, Portland sued Uber yesterday to stop the fast-growing ride-hailing service from operating in the Oregon city until it follows local regulations.
Uber operates in areas around Portland, but only started up in the city itself on Friday, without consent from authorities or any agreement over how it should be regulated.
“The city’s lawsuit is asking for a declaration by the court that Uber is subject to the city’s regulations,” the city said in a statement.
“The lawsuit also asks the court to order Uber to stop operating in Portland until it is in compliance with the city’s safety, health and consumer protection rules.”
Uber’s website does not currently list Portland, Oregon, as a location where it operates, but local media reported that the service has been available there for the past few days.
