Another day, another set of legal issues for Uber Inc., with the Government of Victoria, Australia taking on Uber over the car service providing Uber X in the state without licensing.

The Victorian Taxi Services Commission (TSC) has filed criminal charges against 12 UberX drivers alleging that they were operating a commercial passenger vehicle without a license. The maximum fine for each offense is AU$7500 ($6,213,) although the standard fine currently stands at AU$1700 ($1,408).

The Melbourne Magistrates Court agreed at its first hearing on the matter to hear the case UberX driver Nathan Brenner first as a test case.

Evidence in the case rests on a number of sting operations undertaken by the TSC in Victoria’s capital city Melbourne and regional city of Geelong on May 28th and August 27th.

The methodology of how the evidence was acquired is being used by Uber as a defense, not any arguments as to the legality or illegality of the service. Counsel for Uber Peter Haag argued before the Magistrate that the informant in the case TSC officer David Morris was “not properly appointed,” and therefore the charge in the case were “not lawful.”

Although Uber operates in multiple Australian states it has continued to have the most problems in Victoria, which has an entrenched taxi industry (some would say a mafia) where taxi licenses are strictly limited, and taxi plates cost in excess of AU$300,000 ($249,000.) Taxi fares in the city are also expensive; a ride from from the city to the airport, a trip of only 15 miles costs AU$68 ($56).

In a story on the TV show The 7:30 Report, Melbourne taxi drivers called for harsh measures, with one saying “If I was the regulator, if I caught you driving an Uber X car, I would crush the car…take the car, impound it and crush it.” A spokesman for Uber told the program that  “I am proud to say Australians have been rapid adopters of ride sharing…there has been millions of rides here in Australia since we’ve launched, which is a clear sign that people are looking for another alternative.”

The case was adjourned to appear before the Melbourne Magistrates Court in February 2015.

photo credit: alandot via photopin cc