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Ben Butler

UberX future faces criminal test case

THE fate of controversial “ride-sharing” service UberX in Victoria may be determined by a criminal test case in February.

In the latest move by authorities around the world to crack down on the allegedly illegal cab operator, a dozen UberX drivers faced criminal charges at the Melbourne Magistrates Court this morning.

Each has been charged with operating a commercial passenger vehicle without a license from the Taxi Services Commission — a crime attracting a fine of up to $7500 — after a sting operation by the regulator.

The TSC alleges the offences took place between May 28 and August 27 in Geelong, Southbank and the Melbourne central business district.

Magistrate Amanda Chambers agreed to a proposal from defence barrister Peter Haag that the charges against UberX driver Nathan Brenner, of Caulfield North, be dealt with first as a test case.

Mr Haag attacked the legitimacy of the sting operation, led by officer David Morris, that resulted in the arrest of Mr Brenner.

“The simple issue is that officer Morris, who is the informant in this case, was not properly appointed,” Mr Haag told the court.

He said Mr Morris’ conduct in accepting a ride using the Uber app and then charging Mr Brenner with a crime was therefore “not lawful”.

“There’s also a question regarding the lawfulness of this method of investigation,” he said.

He said this was because the investigation might be tainted because the sting operation amounted to entrapment by the TSC.

“Those who were instructing Morris counselled and procured the commission of the offences,” he said.

He said his client did not admit to operating a commercial passenger vehicle without a taxi license.

While a test case would not bind the TSC and Uber, Mr Haag said he thought it would probably “be a determinative decision”.

Speaking outside the court, Mr Haag declined to say if Uber was funding the drivers’ defence.

Their solicitor, Anthony Brand of Slades & Parsons, also declined to answer the question.

“I will not discuss my clients’ matters with the press,” he said.

Uber spokeswoman Katie Currie did not answer when asked if the company was paying for the defence but said it “stands by its partners fully”.

The case affects only Uber’s low-cost UberX service, where drivers use their own cars to ferry passengers who book using the company’s smartphone app.

Its Uber Black service uses hire cars and drivers that are accredited by the TSC.

In the past week US-based Uber has been banned in Spain and Thailand, while the US city of Portland has also moved to shut down the service.

This follows a ban imposed by the Indian government following rape allegations against an Uber driver in New Delhi.

The case will return to court for a hearing of the issues raised by Mr Haag on February 5.

Ben ButlerNational Investigations Editor

Ben Butler has investigated everything from bikie gangs to multibillion dollar international frauds, with a particular focus on the intersection between the corporate and criminal worlds. He has previously worked for mastheads including The Age, The Australian and The Guardian.

Original URL: https://www.theaustralian.com.au/business/margin-call/uberx-future-faces-criminal-test-case/news-story/128316fd2366db925c57e05724e1151c