Embattled US ride-hailing service Uber announced Wednesday its first suspension in an EU country, saying its will halt operations in Hungary on July 24 because of new legislation making it "impossible" to operate. The same day, a new law comes into force that allows the Hungarian authorities to block "a provider of taxi services operating without a proper dispatch centre" for up to one year.
A Uber statement said that the legislation passed by parliament last month "makes it impossible for Hungarian drivers, in spite of having licences and properly paying taxes, to use their own vehicles to make money". The US company has become one of the world's most valuable start-ups, worth some $50 billion (44 billion euros), as it has expanded to more than 50 countries including 21 EU member countries other than Hungary.
Last month Saudi Arabia pumped $3.5 billion into the company to help it fund further growth. The firm says it is not a transport company like taxi firms, and that it simply connects drivers with passengers. But it has faced regulatory hurdles and protests from established taxi operators in most locations where it has launched. Last week a French court fined it 800,000 euros ($900,000). In Europe, Uber has filed complaints with Brussels against France, Germany and Spain, arguing that restrictive national or city policies are in violation of European Union law.