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Business

Uber Convicted, Fined in French Trial Over Taxi Practices

The court did not hand prison terms, and rejected a prosecutor's request that the two executives be barred from running any company for five years

Paris taxi drivers gather near a van with posters reading "Uber get out" during a taxi drivers demonstration in Paris, photo: AP/Bertrand Combaldieu
2 years ago

A French court has convicted and fined Uber and two of its executives for deceptive commercial practices and illegal business activity over its lowest-cost ride service.

It’s the latest legal tangle for the app-based business, which has faced protests from taxi unions and regulators around the world, reflecting larger tensions between long-regulated industries and the borderless, online economy.

The court fined the San Francisco-based company 800,000 euros ($907,000), regional Uber executive Pierre-Dimitry Gore-Coty 30,000 euros, and Uber’s France general manager Thibaud Simphal 20,000 euros. Half of all the fines were suspended.

The court did not hand prison terms, and rejected a prosecutor’s request that the two executives be barred from running any company for five years.

FILE - In this Sunday, Aug. 30, 2015 file photo Pierre-Dimitri Gore-Coty, general manager for western Europe of California-based Uber, listens during a round table discussion in Paris, France. Uber could face millions of euros in damages and fines and Gore-Coty and Thibaud Simphal , two of its top European executives could lose their jobs in a French court ruling expected Thursday June 9, 2016. (AP Photo/Michel Euler, File)

Pierre-Dimitri Gore-Coty, general manager for western Europe of California-based Uber, listens during a round table discussion in Paris, France. Photo: AP/Michel Euler

And the fines were much lower than the 100 million euros in damages that traditional taxi services had sought.

They accused the low-cost UberPop service of unfair competition because it uses non-professional drivers. UberPop is now banned in France but Uber still operates a service with professional drivers.

It was the first trial for Uber managers in France. 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.

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 150,000 euros ($170,000) over UberPop by a Paris court.

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.

In Spain and Italy, Uber is outlawed entirely.

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