site.btaSupreme Administrative Court Confirms Immediate Enforcement of Decision Ordering Uber to Suspend Operations

Supreme Administrative Court Confirms Immediate Enforcement of Decision Ordering Uber to Suspend Operations

Sofia, September 29 (BTA) - Bulgaria's Supreme Administrative Court (SAC) has confirmed the immediate enforcement of a decision of the Commission for Protection of Competition (CPC) which ordered Uber B.V. and Rasier Operations B.V. to bring to an end violations of the law constituting unfair competition, the CPC said in a press release on Monday.

In July, the CPC found that the UberX service for carriage of passengers is essentially a taxi service but does not comply with the requirements of Bulgarian legislation with regard to taxi drivers and their cars, which gives the two companies competitive advantages as they incur lower costs than conventional taxis.

The CPC imposed on each of the two companies a pecuniary penalty of 50,000 leva, plus another 50,000 leva on each for a failure to comply with the assistance obligation because of their refusal to provide information required in the course of the investigation. The CPC decreed immediate enforcement of its decision.

By its ruling of September 23, 2015, the SAC dismissed Uber's motion for a stay of the immediate enforcement of the CPC decision, determining that a stay is admissible only if the contesting party proves that the immediate enforcement inflicts on it a detriment that is significant or difficult to repair. While admitting that the companies' actual losses and gains foregone have a patrimonial dimension, the SAC holds that the violations established by the CPC affect a public interest, and namely "observance of sound commercial practice in connection with the requirements for carriage of passengers introduced in the country, which is furthermore directly related to safeguarding citizens' life and health through safe transport." The SAC argues that the undertakings penalized by the CPC are not impeded from implementing the investments they plan in this country observing the national legislation.

The company offering the UberX service has already informed the European Commission of the CPC decision because, in its opinion, this decision violates EU laws, Nova TV reported. Uber recalls that the SAC has not yet pronounced on the merits of the case.