The Hungarian Government Resolves The Uber Dispute

On 13 June 2016, the Hungarian Parliament accepted a proposal to amend current transportation regulations (the "Proposal") and resolved a dispute which arose as a result of Uber's operations in Hungary. Since the summer of 2014, when Uber started operating in Budapest, criticisms rained down on the transportation company. The problem with the current situation is twofold: most taxi companies are against this new form of transportation recognising that Uber drivers have an unfair competitive advantage, resulting from regulatory gaps, and a lack of supervision and control by the competent authorities thus reducing their operational costs. The other issue is push-back from Uber. After the Proposal was accepted, the Hungarian CEO of Uber argued that "the prohibition or banning of a new technology because it cannot be implemented into an obsolete regulatory framework cannot be a direction to follow".