May 16 (SeeNews) - A new regulation imposing fines on unlicensed providers of taxi services entered into force in Romania on Thursday, potentially spelling trouble for ridesharing platforms such as Uber.
According to an emergency decree adopted by the government in March and published in the Official Gazette, car drivers holding no licence for transporting passengers for a fee can be fined on the spot with up to 5,000 lei ($1,176/1,050 euro).
While deputy prime minister and development minister Gabriel Suciu said on Wednesday evening that the emergency decree is targeting 'pirates' operating in taxi services and not ridesharing companies, the regulation does not state explicitly that the partner drivers of such companies won't be fined.
"Nowhere in Europe regulation of Uber was simple. But the government will eventually regulate it. I repeat, the ordinance is not directed against Uber," Suciu said in a televised statement.
When the government adopted the decree in March, Uber Romania said that the new regulation will not affect the company's business and that the government has pledged to issue another decree specifically regulating the ridesharing sector within 60 days. This has not happened yet.
Also in March, Uber and Bolt (ex-Taxify) called on the government not to issue an emergency decree banning their services but rather amend legislation.
"Until we also have a regulatory framework in Romania for new alternative transport services, a framework similar to other EU member states, we are asking the government to postpone a potential emergency ordinance on behalf of over 2 million users and tens of thousands of drivers who use our platforms to earn their living," Uber and Bolt said in a joint statement back then.
Members of several Romanian transport unions protested in front of the government headquarters in Bucharest for several days in March, demanding the government to issue an emergency decree changing the regulations for ridesharing apps which in their view are practising 'illicit passenger transport".
Uber, present in Romania since 2015, operates in Bucharest, Timisoara, Brasov, Cluj and Iasi. The company had to fight several legal battles to be allowed to operate in Bucharest and Cluj.
Uber Romania is owned by US-based multinational online transportation network company Uber Technologies Inc.
(1 euro=4.7616 lei)