€10,000 fines threat for Uber taxis in Brussels

Eurocrats hoping to hail a taxi at the touch of their smartphone by using the increasingly popular Uber app might have to think twice.

A Brussels court has issued an order banning Uber - which links private taxi drivers with customers via its app - saying its fleet does not have the necessary licences to operate in the EU capital.

Uber drivers will be fined €10,000 if they are caught carrying private passengers.

The decision is the latest blow for the San Francisco start-up backed by Google and Goldman Sachs as it tries to expand its presence in Europe, where it has faced intense regulatory hurdles and opposition from traditional taxi associations.

Neelie Kroes, the EU's digital commissioner, said the court's decision was "crazy" and "outrageous".

"This decision ... is not about protecting or helping passengers - it's about protecting a taxi cartel," Ms Kroes told the Financial Times.

"If Brussels authorities have a problem with Uber they should find a way to help them comply with standards. Slamming the door in Uber's face doesn't solve anything."

A spokesperson for Brigitte Grouwels, transport minister for the Brussels region, defended the court's decision.

"They [Uber] do not comply with existing rules, they are not registered, their drivers don't have a regular licence and do not follow the rules that conventional taxis have to follow ... that's why the court blocked them," said the spokesperson.

The court's decision is unlikely to surprise Uber, which has been subject to similar actions in other European countries.

"Uber has faced challenges in many places where it launched its services, which are highly appreciated by consumers," said a person close to the company.

<

The tabular content relating to this article is not available to view. Apologies in advance for the inconvenience caused.

Francois Hollande's administration tried to placate traditional taxi drivers by making private cabs wait for 15 minutes after receiving an order before picking up their customer. But the rule was thrown out by the country's highest administrative court.

Taxi unions in Milan plastered the walls of Italy's financial capital with fliers showing a picture of Benedetta Arese Lucini, Uber's Italian general manager, with a sign saying "Damned Arese Lucini GO HOME".

Ms Kroes said the court's decision would send a wrong message to tech companies willing to invest in Europe. She said the ban sent "a bad anti-tech message about Brussels, which is already in the 4G dark ages. People in Brussels are modern and open, they should have a chance to use modern and open services."

© The Financial Times Limited 2014. All rights reserved.
FT and Financial Times are trademarks of the Financial Times Ltd.
Not to be redistributed, copied or modified in any way.
Euro2day.gr is solely responsible for providing this translation and the Financial Times Limited does not accept any liability for the accuracy or quality of the translation