The Directorate General of Highways (DGH) yesterday said it would appeal the Taipei High Administrative Court’s ruling that holds it responsible for improper penalization of taxi-app Uber Taiwan and Uber drivers, who had accumulated fines topping NT$46.5 million (US$1.42 million) as of Sunday.
The San Francisco-based company’s local branch has been fined by DGH since September last year for operating a transport business that had not been approved by the administrative authority.
Uber Taiwan first sought to cancel the fines by appealing to the Executive Yuan, to no avail. It then sought to have 21 of the penalties waived via administrative lawsuits.
The court ruled partially in favor of Uber Taiwan earlier this month.
Based on the ruling, 19 of the penalties — totaling NT$2.05 million — are to be canceled because the citations did not list the exact times and locations where the breaches occurred.
The missing details made those fines “flawed” administrative penalties, the court said.
The court also found problems with DGH’s ordering of Uber Taiwan to suspend operations, as the company had registered with the Ministry of Economic Affairs to offer six forms of business, but not including a transport business.
Despite only being fined over breaches of transport business regulations, the court said Uber Taiwan was ordered to cease all of its operations.
DGH had no authority to demand the company stop all of its business, as those operations are not regulated by the Highway Act (公路法), which the directorate enforces, the court said.
DGH must be specific as to which operations Uber Taiwan should suspend, the court said.
Uber Taiwan last week announced that it is expanding its service to Taichung, with passengers there promised fees 25 percent lower than those paid in Taipei.
The company yesterday said it is working with Duofu Care and Services, a private transport company serving physically disabled people, to train Uber drivers to offer similar services.
However, the DGH said it would appeal the court ruling, a stance supported by the Ministry of Transportation and Communications.
Railways and Highways Department Director General Wang Mu-han (王穆衡) said the transport ministry would continue fining Uber as long as it remains an illegal business.
He said that the transport ministry has studied the ruling and would seek to address the issues raised by the court.
While Wang applauded Uber’s ambition to serve physically disabled people, he said the company needs to abide by the law.
Uber cannot simply disregard laws because it is making a contribution to the society, he said.
Wang said that Taiwan does not have regulations restricting foreign investment in the taxi business, and the government already has laws regulating the services offered by Uber.
He said it is unacceptable that the company refuses to play by the rules and flaunts the nation’s laws.
Wang said Duofu is a legal transport business operator.
Even though Duofu offers a transport service that is similar to a social service, it is still paying its taxes, he said.
“Duofu has spent years establishing a viable model that serves both its target customers and generates enough profit to support the business,” Wang said.
“If a company like Uber can just say that it can do the same business without paying taxes and other overheads by having a fixed number of taxis, would it not wipe out all of the efforts of Duofu and any similar company? Is that fair?” he said.
“Should the government not be obliged to protect legal businesses, which have painstakingly built up their operations?” Wang added.
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