By JULIUS BARIGABA

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The Comesa Competition Commission (CCC) says it has reviewed Uber operations and contract and found systems that go against the regional regime on consumer protection.

The CCC, which polices firms in the Common Market for East and Southern Africa (Comesa) bloc, also protested a section in the contract offered by Uber that compels parties to its service, to resolve disputes under Dutch laws.

The commission wants that changed to prioritise local laws in the countries where cab hailing firm operates.

Uber, headquartered in the Netherlands, first launched in sub-Saharan Africa in 2013 in South Africa, but soon expanded to Nigeria, Ghana and Cote d’Ivoire in West Africa, as well as Kenya, Uganda and Tanzania in East Africa.

Read: Uber resumes services in Tanzania after fare dispute resolved

However, the company’s contract included clauses that did not favour customers, while it also designated the Netherlands as the jurisdiction to resolve disputes between the parties, which the watchdog “finds unacceptable,” Dr Willard Mwemba, the CCC chief executive officer told journalists at a recent press conference.

“In the common market, Uber is prevalent in Kenya, Uganda and Egypt. In their contract, they say the price can change at any time and services can be terminated at any time in the course of the journey. And in case of a dispute, the law that would apply is the Netherlands law. We cannot accept that,” he said.

“Everything is done online, your application for the job, filing complaints, it’s all online. I have been lucky because they address most of my complaints. But if I have to go to Europe to resolve a serious dispute, then it’s not favourable [to me]. I wasn’t aware of that,” says Amyline Atukunda, a Ugandan Uber driver.

“These things are not known to the average user or even the driver," says Dr Mwemba, whose Lilongwe-based agency regulates competition matters and consumer protection in the Comesa region, adding that Uber’s contract disclaims any carrier liability.

However, he explained that the review process which started last year is nearing its end and that by end of this year, Uber will be forced to operate under the laws of the common market. “We’ve removed the contentious clauses: price change, contract termination mid-journey and the Netherlands law.”

Uber drivers in Uganda said they have been in situations where customers often decline to pay over price disputes after the charge is increased mid-journey before they get to their destination.

Read: Uber, Bolt drivers in Kenya stage go-slow over commissions

Normally, unexpected changes in traffic such as road blockades to allow VIPs to pass or route changes may add charges on the original fare.

“These changes are not known to us because we only see the price that is shown when booking. At the destination, you see a different figure.

"Customers who own cars may understand the price change but those who don’t own cars or aren’t regular Uber users often decline to pay,” an ex-Uber driver said.

“This can take time to resolve and it’s not good for me as a driver,” he said, adding that he quit the ride-hailing service after taking the hit on trips that customers declined to pay for, which left him at the mercy of Uber, no immediate recourse for compensation.

The East African did not immediately receive responses from Uber on the review of its contracts and operations in Comesa region.

It is not clear if consumer protection watchdogs in other parts of Africa are also pursuing similar moves that could further impact Uber’s global operations, which are already coming under a lot of regulatory pressures, including the latest setback in which company was last hit with a last week.

Dutch data protection watchdog on August 26, slapped a €290 million ($324 million) fine on Uber for the transfer of European drivers’ data to the company’s servers in the United States, saying this was a serious violation of the European Union’s General Data Protection Regulation.