Legal Bulletin: Technology, Media & Telecoms (Aug. 2015)
·
Regulate to Innovate: The Philippines Legalizes
Uber Business Model
·
Antitrust Issues: The Philippine Competition Act
·
And Wi-Fi for All: The Free Public Wi-Fi Act
·
Outsourcing Update: BPOs are Finding a Home in
Cebu
·
Privacy Settings: Data Privacy Act Update
Regulate to Innovate: The Philippines Legalizes Uber
Business Model
What it’s about
Uber has been the most recent poster child of disruptive
innovation; its business model refuses to fit typical parameters by which most
countries regulate public transport. Like other jurisdictions, the Philippines
characterize persons offering transportation services to the public as public
utilities. Not only do these providers have to obtain a franchise and comply
with a slew of regulations, they need to be at least 60% Filipino-owned.
It Ain’t Over for Uber
Enter Uber (sometime in 2013) whose presence on Manila’s
streets quickly gained popularity among normally taxi-riding city residents.
But it also gained the ire of franchise holders that saw an unregulated Uber as
having an unfair advantage.
Legalizing Uber
However, a strong pro-Uber lobby has ultimately resulted in
the world’s first set of rules expressly allowing and regulating
“transportation network companies” or TNCs.