Uber Faces Potential Big Fine and Ban for Bosses in France

Advertisement
By Associated Press | Updated: 26 February 2016 11:25 IST
Uber risks millions of euros in damages and fines and having two top executives banned from running the ride-hailing company in France as a trial wrapped up Thursday in a Paris court.

The San Francisco-based company is in trouble in France over its now-suspended low-cost UberPop service, which connected clients to non-professional drivers, infuriated French taxi drivers and prompted the criminal charges. Uber continues to operate its standard service with registered professional drivers.

A Paris court wrapped up a protracted, high-profile trial Thursday targeting Thibaud Simphal, general manager for France, and Pierre-Dimitri Gore-Coty, chief for Europe, Middle East and Africa. The verdict will be delivered June 9.

They are accused of complicity in practicing an illegal taxi activity. Charges also include deceptive commercial activity and violation of French privacy law by illegally stocking, processing and recording personal information about the self-employed drivers who work with Uber.

Advertisement

The charges could potentially carry prison terms, but the prosecutor did not recommend prison in her closing arguments. She asked for the two executives to be banned from managing, running or heading any companies in France for five years. She also called for a EUR 1 million ($1.1 million) fine against Uber France, a EUR 70,000 ($77,000) fine for Gore-Coty and a EUR 50,000 ($55,000) fine for Simphal.

Advertisement

Dozens of taxi unions, associations and drivers are seeking more than EUR 100 million in damages overall.

Their lawyers argue that traditional taxi drivers are losing business due to unfair competition by non-professional drivers. They claimed during the trial that Uber sidesteps taxes, social charges and licensing fees and works with unregistered, badly-trained and improperly-insured drivers.

Advertisement

During the sometimes heated hearings, Uber was called names like "monster," ''thug" or "weasel."

In a rare mea culpa, Gore-Coty acknowledged in a statement on his LinkedIn profile last week that "Uber sometimes went too far" in "challenging the status quo" in the taxi industry, which "made us appear as unnecessarily aggressive rather than constructive." The 27-year-old manager added, "Paris has a pretty special place in Uber's heart."

Advertisement

During the trial, lawyers for Uber argued Simphal and Gore-Coty are not the legal representatives for Uber in France, have no such mandate from the shareholders and are only salaried managers dealing mostly with marketing and advertising.

They said the people in the company actually responsible for connecting users with UberPop drivers are those who organized the app-based service, without naming anyone in specific. Gore-Coty and Uber's Europe operations are based in the Netherlands.

Uber lawyers also maintained the French agency that specializes in privacy violations has never put the company on notice for any breaches and never initiated any lawsuits.

More than 200 UberPop drivers have been fined under fast-track procedures in France, and the company has already been convicted of deceptive commercial practices and fined EUR 150,000 ($170,000) over UberPop by a Paris court. This is the first trial for Uber managers in France.

The French Parliament voted to outlaw UberPop and other similar services in 2014, and Uber suspended its UberPop service in France last July. But its standard app-based service still prompts occasional strikes and clashes with taxi drivers, reflecting larger tensions between long-regulated industries and the borderless, online economy.

In Spain and Italy, Uber is outlawed entirely.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Apps, Uber, Uber App, Uber Taxi App
Advertisement

Related Stories

Popular Mobile Brands
  1. Ek Deewane Ki Deewaniyat OTT Release Date: When and Where to Watch it Online?
  2. OnePlus 15T Display, Camera, and More Details Leaked Online
  1. Electricity-Driven Nitrogen Insertion Opens a Sustainable Path to Drug-Ready Heterocycles
  2. 90s - A Middle Class Biopic Out on OTT: Know Where to Watch This Telugu Drama Series
  3. Ek Deewane Ki Deewaniyat OTT Release Date: When and Where to Watch it Online?
  4. OnePlus 15T Display, Camera, and More Details Leaked Online
  5. Industry OTT Release Date: When and Where to Watch it Online?
  6. Human Specimens Now Streaming on Prime Video: A Chilling Japanese Mystery You Shouldn’t Miss
  7. Santhana Prapthirasthu Now Streaming on Prime Video and JioHotstar: What You Need to Know
  8. Oppo Reno 15 Pro Mini India Launch and Key Specifications Tipped Online
  9. Samsung Galaxy Z Flip 8 Tipped to Feature Newly-Launched Exynos 2600 SoC
  10. Dawood Now Streaming Online: A Crime Comedy Thriller with Twists, Chaos, and Dark Humour
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.