Telecom industry criticizes Argentina's Uber ban

Latin America's telecoms industry associations criticized a court decision in Buenos Aires banning the ride-hailing app Uber country-wide.

The US company is accused of breaching local transportation regulations.

In a joint statement, the Inter-American telecom companies association (Asiet) and the GSMA expressed their concern over the decision of an appeal court in Buenos Aires requiring mobile operators to block access to Uber.

Both associations call on the judicial authorities and telecom regulator Enacom to overrule the ban and find other ways to make sure Uber comply with regulations.

"The blocking of internet content and services is an extreme measure that has potential harmful effects on the integrity and security of the network and in no way constitutes a solution to the basic problem that the court aims to solve. It is a measure of difficult technical application that puts mobile operators on a position that does not correspond to them," said the statement.

Citing the Internet Society, Asiet and GSMA claim that blocking does not eliminate content from the internet nor does it stop illegal activity or processes.

Their statement added that the measure leads to collateral effects, putting users at risk, reducing transparency and trust in the internet, thus favoring the non-transparency of services and violates users' privacy. "All these costs must be taken into account when analyzing the blockage."

"Likewise, it is necessary to emphasize that the Autonomous City of Buenos Aires should not issue decisions of federal matters, such as communications and internet services," the entities said.

Uber launched in Argentina in 2016. Buenos Aires was the last big city in Latin America where Uber arrived. The company claims operates legally in Buenos Aires, even though there is no specific regulatory framework.

"The regulatory framework orders something that exists, as it is the case not only in transport, but also in telecommunications, in music, in audiovisual. And yet the non-existence of a legal framework does not necessarily imply the illegality of a service. Without going any further, things like Netflix, Spotify or WhatsApp would be illegal because they do not have a regulatory framework. The same goes for Uber...," the company's Argentina CEO Mariano Otero said in an interview with La Voz.

In Latin America, regulations for app-based transport services such as Uber exist in Brazil, where they are federal but allow municipalities to define certain rules; in several Mexican states, including Mexico City; and in Montevideo, among others.

Chile and Bolivia are discussing formalizing Uber.

In Argentina, the city of Córdoba is currently discussing a specific regulation.