Blow for Uber as Finnish
court orders two drivers to give up earnings
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[September 21, 2016]
HELSINKI (Reuters) - Finland's court
of appeal ordered two Uber drivers on Wednesday to give up their
earnings to the state for not having a valid taxi license, dealing a
blow to the ride-hailing service.
Uber Technologies Inc [UBER.UL], which has faced bans and protests from
established taxi operators around the world, is legal in Finland
provided its drivers hold a taxi license.
But the length of time it takes to get a permit has led some drivers to
work without one, leading to a debate within Finland about whether the
system should be reformed.
The government presented a bill on Tuesday to deregulate the taxi market
from 2018, but the initial plan to let drivers earn up to 10,000 euros
($11,150) a year without a permit was dropped due to opposition from the
nationalist Finns party, part of the coalition.
The appeal court decision, which confirms earlier local court verdicts,
confiscates earnings of 12,250 euros and 2,800 euros respectively from
the two drivers.
Uber's Finland country manager Joel Jarvinen said a police crackdown on
drivers without licenses was regrettable at a time when the government
was preparing changes in taxi regulation, but declined to comment
further on the verdicts.
The rulings will likely be followed by several similar cases while
current legislation is in force, the police said.
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"Right now we have around 30 (Uber) cases proceeding to consideration of charges
and a bunch of others under investigation," Inspector Pekka Seppala said.
According to Uber, more than 100,000 Finns have downloaded its mobile app, and
thousands use the service every week.
While drivers will still need permits under the government's new bill, annual
permit quotas and fare restrictions will be removed, which could help new
entrants to the market.
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"It is positive that the reform goes forward, it allows more flexible traffic
solutions ... But it is regrettable that the bill does not take any notice of
small-scale ride-sharing," Uber's Jarvinen said, adding the transition period
felt long.
(Reporting by Jussi Rosendahl and Tuomas Forsell; Editing by Mark Potter)
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