RIO DE JANEIRO, BRAZIL – A judge ordered the suspension of Uber Technologies’ services in Colombia after a technology platform brought a lawsuit alleging that the company was engaging in unfair competition.
A judge from the Industry and Commerce Superintendency, which regulates the market, decided that Uber’s App violates competition rules, the agency said in a statement on Friday. The Cotech, a taxi service platform, brought the lawsuit against Uber.
“This violates the rules regulating the market, generates a significant advantage and a deviation from Cotech’s clientele,” the regulator said in another statement.
Although the decision orders the service to be suspended “immediately,” the App cannot be forced to comply unless it is required to do so in a separate lawsuit, said Andrés Barreto, who is in charge of the superintendency. Uber can still provide food delivery services, Barreto added.
In a statement, Uber’s spokesman said “after years of working proactively to introduce sensible regulations” for the travel sharing service in Colombia, he regretted that the Industry and Commerce Superintendency’s decision “did not follow Colombian laws and its regular procedure.” The San Francisco-based company appealed the decision.
A further setback
The ruling is yet another setback for Uber’s global operations. Regulators in London, one of Uber’s largest markets, last month suspended the company’s license after finding that the group was risking passenger safety by failing to properly assess drivers.
Uber continues to operate in London while regulators look at the company’s appeal. Colombia is less relevant for Uber, which in October gave up plans to build a US$40 million service and support center in the country. The company said over 2 million people use the service, which employs 88,000 drivers.
Source: InfoMoney
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