Uber Is Ordered to Suspend Services in Brazil by Sao Paulo Court

Uber Technologies Inc. was ordered to halt its activities in Brazil, adding another country to the list where the car-hailing service faces legal obstacles.

Judge Roberto Luiz Corcioli Filho of the State of Sao Paulo Court of Law accepted a request from a taxi drivers union and set a fine of 100,000 reais ($34,000) a day, to a maximum of 5 million reais, if Uber violates his order to stop operating.

“The company is providing a clandestine service,” the judge wrote in a ruling on Tuesday. The taxi union had said that providing rides on demand in the country is the exclusive right of drivers with a license for the purpose, which Uber and its personnel don’t have.

“Thousands of professional taxi drivers are being harmed daily by the dizzying expansion of the company,” Corcioli Filho wrote.

Uber was banned from operating in Portugal on Tuesday following claims that its drivers should be required to have the permits required for taxi drivers. The San Francisco-based company also faces legal restrictions in countries including Germany, Spain, France and the Netherlands.

“We publicly reinforce our commitment to provide the people of Sao Paulo a safe and reliable urban mobility alternative,” Uber said in a statement. The company said it hadn’t been notified of the judge’s order.

Uber began operating in Brazil in May 2014 and had served Sao Paulo, Rio de Janeiro, Brasilia and Belo Horizonte.

Corcioli Filho ordered Google Inc., Apple Inc., Microsoft Corp. and Samsung Electronics Co. to suspend downloads for Brazilian users of Uber’s app from their online stores and to block it remotely on mobile phones that already have installed it.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE