Uber & Uber Execs Have Been Fined By a Paris Court For Running Illegal Taxi Service

Uber Technologies Inc., has been fined by a French court on June 9 for running an illegal taxi service with non-professional drivers. The court has also imposed token monetary penalty upon two executives of the app based taxi company in the first criminal case of its nature in the Europe.

The suit details suggest, UberPop Service has connected users with non-professional drivers who use their own cars. The criminal court of Paris has ordered the transportation network company to pay €800,000 (£625,536/$907,000) in penalty while suspending half of the amount.

Execs from Uber have been trialed for the first time in its history. Pierre-Dimitry Gore-Coty, Uber director for Europe, Middle East and Africa has been fined with €30,000 and Thibaud Simphal, company manager in France with €20,000. However, both of them have been ordered to pay half. The Paris court has held them guilty of deceptive commercial practices and being accomplices in operating an illegal transport service, reports BBC.

Prior to the court ruling, more than 200 UberPop drivers have been fined under the country’s fast track procedures. In addition to that, the ride sharing service has already been convicted of deceptive commercial practices while counting fine for some $170,000.

The Paris court hasn’t ordered for prison sentences ignoring plaintiff’s appeal in this regard. It has also rejected prosecutor’s appeal for barring the two Uber execs from running any company for the next five years. Furthermore, the court imposed penalty seems to be much lower than $100 million, as has been sought by in damages by the traditional taxi service providers and also plaintiff for the lawsuit, according to a report published in Los Angeles Times.

The French parliament has declared UberPop and another similar service outlaw in 2014 upon voting. The banning takes place following pressure from licensed taxi drivers. They have accused the ride sharing service for fueling unfair competition while rendering service through non-professional drivers.

UberPop drivers with no professional license to pick up paying passengers have been witnessed to get fined under first track procedures in France since the start of 2015. UberPop has suspended its service in France since July 2015.

Both Uber and its execs will appeal against the court ruling, informs a spokesperson for the ride sharing service. The world’s most valuable business startup with support from venture capital firms has appeared in many legal battles following expansion to 60 countries since it started rolling in 2009.

Meanwhile, a Frankfurt court has also upheld the German ban on UberPop on June 9. The court has rejected Uber’s appeal against lower court ruling that orders for setting stiff fines in violations of local transport laws, reports Reuters.

Courts in Itali and Spain have also declared UberPop as illegal. Similar fate is going to be embraced in Belgium and the Netherlands. Legal obligations in Europe have forced Uber to operate the service by professional drivers in black sedan.

Fundamental changes in France have enabled Uber to grow rapidly. France appears as its second largest market in Europe just after the UK.