Uber to cease operations in Colombia as the SIC founds it in violation of the competition rules

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Updated on Mar 11, 2020
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  • Colombian judge orders Uber to cease operations in the country.
  • Transport for London (TFL) also stripped Uber of its licence in November.
  • Uber currently has around 88,000 drivers and 2.3 million users in Colombia.
  • SIC’s order is applicable not only to Uber, but Uber Van and Uber X as well.
  • Uber rejected SIC's decision and immediately appealed against it.
  • Uber's other services including Uber eats are not to cease operations under Friday's ruling.
  • SIC had previously imposed a massive $629,000 fine on Uber.

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According to an announcement on Friday, Colombia has ordered the American multinational ride-hailing service, Uber, to cease its countrywide operations following a Colombian judge’s ruling that found the company in violation of the competition rules. Transport for London (TFL) had also stripped Uber of its license earlier in November.  

The investigation stemmed from the COTECH SA lawsuit that was previously filed against Uber. Following the investigation, Colombian SIC (Superintendency of Industry and Commerce) announced that the ride-hailing service has violated the market rules and declared that it will no longer stay operational in the country.

Uber Has Around 88,000 Drivers And 2.3 Million Users In Colombia

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As per the sources, Uber currently has around 88,000 drivers in Colombia with active users counting to as high as 2.3 million. Colombian regulations about ride-hailing applications have always been controversial with the Ministry of Technology seeing it as legal but the transport authorities reiterating that such apps fail to abide by the law.

SIC’s statement further highlighted that Uber has relied on its app to create its monopoly in the market. SIC’s decision on Friday forbid the company from using its app for its ride-hailing services. SIC’s order is applicable not only to Uber, but Uber Van and Uber X as well.

Uber responded immediately to the news and commented that it deems the decision unfair. Rejecting the SIC’s ruling, the company immediately appealed against the decision. According to Uber:

“This decision reflects an act of censorship and infringes on the Inter American Convention on Human Rights, which has already condemned attempts to block Uber for violating the neutrality of the web, liberty of expression and freedom of internet”.

The SIC’s head, Andres Barreto, however, also remarked that other services from Uber including Uber Eats are not required to cease operations under Friday’s decision.

SIC Imposed A Massive $629,000 Fine On Uber

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Earlier in 2019, a massive fine of $629,000 was also imposed on Uber by the SIC as the American company failed to comply with its order and attempted to block an administrative visit.  

In light of the multiple restrictions and fines on Uber, the company remained challenged in the stock market in 2019. The stock opened at $41.57 at the start of the year. Having noted a year to date high of $46.38 in June, share prices were reported to have dropped significantly. The stock printed a new low at $25.99 in November. The $51.94 billion company closed the last week at $30.37.

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