Brussels, 22/12/2015 (Agence Europe) - With the Uber Head of Policy for Europe, the Middle East and Africa making his first visit to the European Parliament on Monday 21 December, MEPs railed against the California-based company and its practices, which many members of the transport (TRAN) committee described as “illegal”.
“Any self-respecting business person who wants to start up has to find out about the legislation in force”, made clear Roberto Parrillo, president of the road transport section of the ETF, the federation which represents transport sector workers, at the very outset of the debate. He had been invited by the Parliament to speak in the debate on Uber, alongside Michael Nielsen, general delegate of the IRU, the international road transport union, and Mark McGann, head of policy for Europe, the Middle East and Africa for Uber.
Parliament was more like a court room than a forum for debate, to the regret of a number of MEPs, such as Pavel Telicka (ALDE, Czech Republic). Most MEPs who spoke criticised Uber for the way it had entered European markets, imposing its business model with scant regard for European social norms and trying to force changes to national laws and levelling down social standards.
The nature of the services offered by Uber was debated at length. Karima Delli (Greens/EFA, France) agreed with Nielsen's comments and stated that the firm cannot claim to be part of the economy based on sharing, as proposed by the European Commission, but is a business. They were joined in this view by Wim van de Camp (EPP, Netherlands) who said that Uber was an American-style money-making concern disregarding the European social model. MEPs asked if Uber was a digital service or a transport service, with most suggesting the second, which imposes far stricter rules (see EUROPE 11379).
“Uber's business model represents all I abhor”, stated Peter Lundgren (EFDD, Sweden), going on to wonder about the many legal grey areas and uncertainties in the event of accidents, on checks of drivers' qualifications and technical inspections of vehicles. Others asked about the form of contract between Uber and the drivers and what percentage of the income generated was taken by the American firm. “Pay your taxes, pay your insurance, guarantee a minimum wage, check your drivers”, demanded Michael Cramer (Greens/EFA, Germany), concerned at the Californian company's tax optimisation. The issue of where personal data were stored was raised by Daniela Aiuto (EFDD, Italy), among others.
Most MEPs were in agreement, however, that it is impossible to ban Uber. “It's just like sand that slips between your fingers. It's impossible to stop Uber”, prophesised José Inacio Faria (ALDE, Portugal). In his view, there is no point in fighting against Uber, it is better to live with it and regulate its activities as well as possible. In this he was backed by Karima Delli, who drew a parallel with drugs. Banning Uber would create an underground market, she said.
This was one of the few points that seemed to please McGann who, somewhat overwhelmed, urged MEPs to stick to empirical evidence, arguing that many assertions were factually incorrect. He also clarified a number of points, such as the nature of Uber's activities, which had nothing to do with the sharing economy, but were a digital service, contrary to the Commission's view. The Court of Justice of the EU, he said, would confirm this in a ruling next year (see EUROPE 11300). He said that 80% of the revenue generated by the company went to the drivers and pointed out that the company was headquartered in the Netherlands and, thus, paid its taxes there. He argued that Uber is trying to create a new model but is faced with rules that are fit only for the industrial age not for the digital era.
“We want to encourage competition but not unfair competition. We support innovation but the rules have to be the same for all”, retorted Cramer, closing a stormy debate. The battle between the Parliament and the Californian company promises to be long and fierce. (Original version in French by Pascal Hansens)