Boost for Uber as Brussels considers regulation of ride sharing

Uber's struggle with regulatory barriers in Europe has received a boost after the European Commission gave the clearest indication yet that it is considering ways to regulate the taxi app 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 has received complaints against France and Germany, told the FY 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 Uber is legal in some countries, such as the UK, in others it operates in a "grey" market, where its legality is unclear. In some cases, such as Spain, the taxi app is banned.

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, 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 in cities 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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