Date
1 March 2017

Tag

Active

Country
Italy Italy
Geographical scope
National
Type
  • Type

    Regulation of passenger transport

    Legal
View Court ruling

Description

On 1 March 2017, the Court of Turin banned Uber's 'Ubepop's service as it found it in breach of competition law. The ruling took into account the precautionary measures of the Court of Milan (May and July 2015), and inhibited the use of UberPop on national territory.

Ruling 01/3/2017, n. 20770/2056 R.G

The facts Taxi associations and operators sued Uber group companies, arguing that UberPop constituted unfair competition under Italian law [Art. 2598 n. 3 c.c.[(https://www.brocardi.it/codice-civile/libro-quinto/titolo-x/capo-i/sezione-ii/art2598.html). This followed earlier interim rulings by the Court of Milan in 2015 that had already blocked UberPop. Taxi Associations claimed that Uber organised a service equivalent to radio taxis but used drivers lacking the mandatory public transport licenses, professional certificates (CAP), registrations, regulated tariffs, and specific insurance required by law. This violation allowed Uber to offer services at much lower prices, creating an unfair competitive advantage. In its defence, Uber argued UberPop was merely an IT platform connecting users for shared, occasional, non-professional transport, not a taxi service. It claimed drivers were free users, not subordinates, choosing if/when to drive, and the payment was a cost reimbursement managed by Uber (which took a 20% service fee). Uber contended existing transport laws didn't apply to this private, shared model.

The Turin Court rejected Uber's defence. It found Uber organized the entire "commercial chain," recruiting drivers, managing communications, setting and varying fares (surge pricing), handling payments, and marketing the service. The court concluded Uber acted as a transport provider itself, not just an intermediary, and that the UberPop system functioned "substantially like the traditional radio taxi service," albeit using technology and unlicensed drivers recruited by Uber. Unfair Competition Ruling: The court held that by operating without adhering to the extensive regulations (licensing, safety checks, tariff controls, insurance) imposed on the licensed taxi sector, Uber gained an "undue advantage" through cost savings. This violation of public market rules constituted unfair competition, as licensed operators could not compete on equal terms ("parity of arms") without breaking the law themselves. The court also dismissed Uber's requests to refer the case to the Constitutional Court or the Court of Justice of the EU (CJEU). It stated public safety concerns prioritised over economic freedom and cited existing CJEU case law indicating that national regulation of such transport services was compatible with EU freedoms. Final Decision: The Court of Turin rejected Uber's arguments, declared the UberPop service constituted unfair competition, and inhibited (banned) the use of the UberPop app nationwide. It also banned any similar service organizing transport by unlicensed individuals for payment on demand. This decision effectively confirmed and absorbed the earlier injunctions from the Court of Milan.


Additional metadata

Keywords
sector aspects, competition, lobbying
Actors
Court
Sector
Transportation and storage
Platforms
Uber

Sources

Citation

Eurofound (2017), Court of Turin bans Uberpop nationwide: it violates competition law (Court ruling), Record number 3734, Platform Economy Database, Dublin, https://apps.eurofound.europa.eu/platformeconomydb/court-of-turin-bans-uberpop-nationwide-it-violates-competition-law-97105.