Tuesday, July 07, 2015

Bulgarian Competition Authority has fined the companies that provide Uber's services

Novinite.com, here.
Press Release of the Commission for Protection of Competition, here.

Google Translate: 
CPC penalize companies Hubert Dutch BV and Razier Opareyshans BV with 50 000 lev for violations under Art. 29 of the LPC (general prohibition of unfair competition) in connection with the provision of the service UberX in the city. Sofia on 12.09.2014 In its decision, the Commission states the termination of the infringements. , and immediate execution of the decision in that part .
The proceedings is initiated automatically by a Commission decision in relation to the received from the Municipality of Sofia information on the introduction of the service "UberX" in the city. Sofia and subsequently merged with other proceedings instituted at the request of "Okay Supertrans" against AD "Hubert Bulgaria" EOOD, again in connection with the service UberX .
During the study found that in providing the service UberX by Hubert BV and Razier Opareyshans BV offenses against the general prohibition of Art. 29 of the CPA. The service has the marks of taxi passengers as far as is done by car fee, requested by the passenger route through the mobile app Uber, which liaises between the passenger and the actual executor of carriage - the user-guide.A comparison between p redlaganite by Hubert BV and Razier Opareyshans BV services and services provided by other mobile applications (even the services of a typical taxi companies) reaches the conclusion that the services are interchangeable, since   lead to the same result - the implementation of a paid shuttle point to another. But in the case at UberX not require the contractor to transport meets specified in the Bulgarian legislation requirements to taxi drivers and their cars. In this sense, when providing service process Hubert BV and Razier Opareyshans BV violate fair trade practice being contrary to the statutory rules governing the conduct of public transport / taxi. Hubert BV and Razier Opareyshans BV create conditions for circumvention, saving users guides means of obtaining the necessary licenses and permits for taxis. Thus the defendants violated the rules of fair competition, procure unfair advantage over competitors and the economic benefit of this behavior.
The Commission also imposed a fine of two companies 50 000 Levs of default for assistance for lack of refined during the study information.
 Commission finds that by "Hubert Bulgaria" EOOD is not a violation of art. 29 of the CPA, as the company is not directly involved in providing the service UberX,   and perform ancillary to Hubert B. C.
Full text of the Decision in Bulgarian, here