Business

Government Says Uber is Illegal in Croatia

By 9 March 2017

Government sent an official reply to MPs’ question.

In late January, MPs Peđa Grbin and Bojan Glavašević (SDP) sent a parliamentary question to Prime Minister Andrej Plenković related to Uber operations in Croatia. They have now finally received the answer from the government stating that Uber is illegal and adding that the authorities will continue to fine Uber’s drivers, reports Index.hr on March 9, 2017.

“Ministry of Sea, Transport and Infrastructure, through its inspection procedures and activities of other relevant services, has determined that using Uber internet platform or app, which is intended for mediation between passengers and drivers, is illegal in the road passenger transportation sector in Croatia.

Uber’s drivers-partners, who perform transport services via the Uber app, do not have a license which would allow them to carry out transport of passengers by road, in accordance with the Law on Road Transportation, which is the basic requirement for carrying out such activities. For this reason, inspection for road transportation has been issuing fines to Uber’s driver-partners for performing transport of passengers without proper licenses. It has also excluded some of their vehicles from the traffic and instituted temporary prohibition of such activities.

Also, it was determined that the Uber app has been placed on the market and managed by the parent company Uber B. V. from the Netherlands, while marketing activities in Croatia are performed by Uber Croatia company.

In accordance with its authority, the Ministry of Sea, Transport and Infrastructure has monitored all the developments in the transportation sector, not only in the field of passenger transport by cars, but also in its entirety, and has established a working group for drafting amendments to the Law on Road Transportation, which includes three sub-groups (for passenger transport, taxi services, and freight transport).

The working group includes representatives of Croatian Chamber of Economy, Croatian Chamber of Crafts, Croatian Employers' Association (including a representative of Uber) and representatives of local governments. Together with experts from the Ministry of Sea, Transport and Infrastructure, their task is, among other things, to propose new legislation in the field of passenger transportation by cars, taking into account all relevant aspects.

The working group has begun its work, it has received proposals from all members, it has detected areas which need to be regulated and will accordingly draft the text of the amendments to the legislation. That process will be followed by a public consultation period and the legislative process. The completion of the entire process of adoption of amendments to the Law on Road Transportation is expected by the end of the third quarter of 2017.

At the same time, inspection services continue to take all actions in accordance with the law, in order to prevent unlawful operations of Uber’s driver-partners in Croatia, which are contrary to the provisions of the current law.

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