Economy
Hungarian government signs 'death sentence' for Uber
Law to put Uber out of business
Lawmakers passed legislation with 119 ‘yes’, 61 ‘no’ votes and 3 abstentions on Monday that essentially seeks to put on-demand ride share service company Uber out of business in Hungary.The proposal was submitted by Development Minister Miklós Seszták and it will be the responsibility of the transport authority to “make temporarily inaccessible" applications ensuring such services and websites promoting them.
The ban can be ordered if the party organising or brokering the taxi service do not comply with dispatch regulations stipulated in the relevant government decree and due to the lack of the necessary permit authorities imposed a fine on the company yet the company continues to offer the service in question. The ban may be ordered for a 365-day period.
The effective blocking will be organised and monitored by the National Media and Telecommunications Authority, and every electronic telecommunication service provider must comply with the resolution to block the website and the application.
The watchdog may impose a fine of HUF 50 000 to HUF 200 000 on the service provider that does not comply. The fine may be repeatedly imposed during non-compliance.
Uber responds
Zoltán Fekete, operations manager at Uber in Hungary, said “Uber sticks to its view that banning and blocking new technologies - only because they cannot be forced into the framework of outdated regulations - is not the right way to go."He cited a recent European Commission guidance calling on member states to choose sensible regulation over bans when it comes to operators in the collaborative economy.
Earlier this month, the European Commission presented guidance aimed at supporting consumers, businesses and public authorities to engage confidently in the collaborative economy. These new business models can make an important contribution to jobs and growth in the European Union, if encouraged and developed in a responsible manner, the EU executive said. The guidance makes it clear that Brussels does not like when businesses such as Uber or Airnbn are banned by member state governments.“Uber has been putting great emphasis on complying with regulations," he said, adding that Uber drivers have obtained the necessary permits and provide receipts in compliance with local regulations.
“Uber continues to seek dialogue with the policymakers, hoping that the current and outdated legislation will be replaced by modern regulation that is tailored for new technologies, with consumers’ interest in the focus. Uber remains committed to its 150 000 users and 1 200 driver partners in Hungary and continues its operation," Fekete concluded.
One day ealier, János Fónagy, parliamentary state secretary at the National Development Ministry, said the Hungarian government does not want to ban Uber but it does want it to "fall in the line" that creates equal competition for all taxi companies operating in the country.
