Sunday, April 5, 2015


Boost for Uber as Brussels considers regulation of ride sharing


(FILES) A file picture taken on December...(FILES) A file picture taken on December 10, 2014 in Paris, shows the Uber smartphone app, used to book taxis using its service, is pictured on a smartphone in front of a taxi. French government announced earlier on December 15, that the law prohibiting non-professional drivers to exercise would be effective from January 1, 2015. AFP PHOTO / ELIOT BLONDETELIOT BLONDET/AFP/Getty Images©AFP
Uber has received a boost in its struggle to overcome regulatory barriers after the European Commission gave the clearest indication yet that it is considering ways to regulate the ride-sharing service at a European rather than national level.
Plans for an in-depth study into the European taxi market to “provide the necessary background for the commission to decide on the need for — and possible character of — any further action at EU level” emerged in a private letter from the commissioner for transport.
The commission, which received complaints from Uber after some of its services were banned in France and Germany, told the FT it supported the development of new and innovative mobility services.
While services such as Uber should not circumvent national rules, member states have to respect the general principles of EU law such as proportionality, non-discrimination and freedom of establishment, the commission said.
Uber has endured a rocky regulatory ride since launching in Europe in 2012, with its drivers facing fines or having their cars impounded. While it is legal in some countries, such as the UK, in others it operates in a “grey” market, where its legality is unclear.
The letter was sent from Violeta Bulc, who oversees transport regulation, to the chairman of the European Parliament’s transport committee. In it, the commissioner said that taxi regulations were “currently” dealt with at a national level, which had led to variances in the cost and service of taxis as well as inconsistent rules on Uber within the single market.
Ms Bulc wrote: “As a result, the regulation and market situation differs from one member state to another and even from one city to another”.
In Amsterdam, Uber’s European headquarters, the authorities raided the taxi app’s office late last month, questioning staff for more than six hours.
UberPOP, the low-cost service that lets drivers use their private cars to pick up riders, is banned in the country, which has led to Uber racking up €100,000 of fines — the maximum allowed under Dutch law.
Violent disputes between Uber drivers and licensed taxi drivers have flared up across Europe, with Uber drivers being attacked in some cities.
In Brussels, where UberPOP is illegal, some Uber drivers refuse to pick up passengers near taxi ranks in case taxi drivers vandalise their car or report them to the police.
The San Francisco-based group has fought back in recent months, lodging complaints with the commission aimed at the French, German and Spanish governments, which have tried to limit or ban the service.
In France last week, a court granted Uber a reprieve by referring the case to the country’s highest appeal court, meaning that the company’s UberPOP drivers could continue to operate in the interim.
The regulation of US technology groups in Europe has come under increased scrutiny in recent months after President Barack Obama accused the European regulators of protectionism.

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