The conflict between uber and german cab companies enters the next stage of escalation. The cab deutschland association enforced a december ruling by the frankfurt regional court and now wants to file an application for due diligence.
In mid-december, the court found several violations of competition law in uber’s business and therefore upheld an action for an injunction filed by cab deutschland.
Shortly after the verdict, uber changed its model for brokering rides in germany and considers that it has fulfilled the court’s requirements to be able to continue its activities. Cab deutschland, on the other hand, reiterated on wednesday that the changes are not enough. The cab cooperative therefore pointed out that violations of the ruling could result in fines of up to 250,000 euros per trip.
Uber works in germany – unlike in other countries – with rental car companies, from which the orders are carried out. The company sees itself only as an operator of a mediation platform. However, the regional court ruled that uber itself also needed a rental car concession – because the company appeared to the customer as the provider of the transport service, selected the specific driver and set the price.
Following the changes implemented by uber shortly before christmas, these tasks will now be taken over by a general contractor. The other transport service providers who have been working for uber act as its subcontractors. In addition, customers are to be informed before each ride who will be carrying out the tour. The driver’s agent is also considering an appeal against the verdict.
Cab deutschland called it a "dodge" and on wednesday served the uber lawyers with the enforceable copy of the judgment and the certificate of deposit for the 150,000 euro security deposit set by the regional court. Now evidence should be collected for legal purposes. According to the court applications, the court will have to examine whether the sentence is violated.
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