Uber Taiwan may be fined $782,181 next year

Uber Taiwan could be looking at a penalty up to NT$25 million if it continues to operate without license in the country next January, Transportation Communication Minister Ho Chen Tan said Wednesday.

A legislative committee on Wednesday morning passed the first reading of an Highway Act amendment that increased the penalty imposed on drivers and companies for the unauthorised operation of transportation services.

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If approved, Uber would be subject to a fine between 100,000 new Taiwan dollars ($3,129) and 25 million new Taiwan dollars ($782,181), apart from the revocation of driver and vehicle licenses for up to two years.

The current law stipulates that businesses and persons who operate transportation services without a business license can be fined from 50,000 to 150,000 new Taiwan dollars, along with confiscation of the vehicle license for 2 to 6 months.

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The Highway Act draft revisions introduced on Wednesday also established an incentive system for informants to encourage the public to report illegal operations.

The new amendment gives law enforcement room to punish violators based on the size of their illegal operation, Ho Chen said, explaining that independent drivers would be subject to lighter fines while companies would be fined from 1 million new Taiwan dollars and above.

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Management, taxation, and insurance are the three fundamental aspects to be covered by the new regulations, Ho Chen said.

US Pressure?

Ho Chen confirmed rumours that US authorities had contacted the ministry over the Uber issue.

He said the US government agencies and business enterprises have "expressed concerns" regarding the regulations set to be introduced amid growing ride-sharing service in the country.

He stressed that the amendment would proceed as planned and would take effect as soon as January 2017 if the bill were passed in the current legislative session.

American Institute in Taiwan spokesman Joseph Bookbinder turned down a request to provide the content of the US officials' private conversations with Taiwanese officials, but told The China Post, "In general, the US believes the sharing economy offers great benefits to consumers and to the economy as a whole."

"Through the Digital Economy Forum, the United States and Taiwan have affirmed the importance of a policy environment that promotes innovation, trade, and investment," Bookbinder wrote.

Uber fights back with advertisements

Uber Taiwan published half-page advertisements on the front page of four major local newspapers on Wednesday, stating that the severity of the fine was disproportionate.

An advertisement published in Apple Daily read: "Legislators are fined 90,000 new Taiwan dollars for drunk driving; regular people will be fined 25 million new Taiwan dollars for driving with Uber?"

In United Daily News, an ad read: "The government suppresses new technology. So much for Asian Silicon Valley!"

The advertisements infuriated some lawmakers, who lambasted Uber for not only refusing to play by the rules but going so far as to challenge, provoke and threaten lawmakers.

In an online statement, Uber Taiwan defended its ads, saying that all it wanted was for Taiwan to "embrace the power to improve and allow space for innovative industries to develop."

Ho Chen said that Uber was "more unfriendly with Taiwan," because it had cooperated with domestic laws in other countries but refused to do so here.

"We hope that with the pressure imposed by the heavy penalty, Uber Taiwan would return to the negotiation table," he said.

Copyright: The China Post/ Asia News Network