Bachelor of General Studies (BGS) Degree Practice Exam

What unethical practice was Uber accused of by European Union regulators?

1. Price fixing

2. Unfair competition

3. False advertising

4. Employee exploitation

The correct answer is: Unfair competition

Uber was accused by European Union regulators of engaging in unfair competition. This accusation stems from the concern that Uber was not complying with local regulations that govern taxi services and other transportation providers. European regulators argued that Uber's business model undermined traditional taxi services by operating in ways that circumvented existing laws aimed at protecting consumers, ensuring safety, and providing fair competition. This situation highlighted the tension between innovative business models in the gig economy and regulatory frameworks that may not have adapted quickly enough to technological advancements. The focus on unfair competition reflects broader issues related to how new platforms can disrupt established industries while potentially leading to practices that disadvantage competitors who are following local laws and regulations.