The taxi industry claims Uber has an unfair advantage. Magistrate Julian Ayres handed down his decision in the Melbourne Magistrates Court on Friday following a drawn-out battle between the Taxi Services Commission and Brenner's defence lawyer, Peter Haag. Mr Brenner was found guilty on two charges, with a third struck out because it was essentially a duplication of charge two. Mr Ayres said he was satisfied that Mr Brenner was the owner and driver of the car that was used to pick up two passengers In August last year, who were undercover taxi compliance officers. Mr Ayres said Mr Brenner was fully aware he was driving a car hire service in exchange for payment. Mr Brenner was fined $900 without conviction. Costs were also awarded to the Taxi Services Commission.

Uber driver Nathan Brenner has been found guilty at the Melbourne Magistrates Court of driving a hire car without licence or registration Credit:Simon Schluter Mr Ayres originally wanted to fine Mr Brenner $500 and put him on a good behaviour bond, on condition that he did not drive or own a vehicle that would be used for ride-sharing without the proper accreditation. However, Mr Brenner refused to agree to this and his fine was increased instead. It is believed that Brenner continues to driver for UberX. Taxi Services Commission [TSC] chairman Graeme Samue told The Age he was pleased with the decision, adding that competition in the taxi and hire car industry must be done "within the confines of the law". "Today's decision vindicates the actions taken by the TSC to enforce the law as it currently stands," he said.

"The TSC has remained committed to enforcing the law and has acted consistently by holding drivers acting illegally to account." He warned that investigations into Uber drivers will continue. A spokeswoman for Uber said the company was disappointed with the decision and would continued to support Mr Brenner, whose legal team have already flagged their intention to appeal. "We will also continue to support the 6000 UberX driver partners in Victoria who are providing a service that has been chosen by half a million people in Melbourne and Geelong. "It is important to acknowledge that this matter is related to one individual and the unique circumstances of his case."

Uber will continue to operate in Victoria, the spokeswoman said. She urged the government to update laws that legalise ride-sharing and to stop "wasting further taxpayer money targeting everyday Victorians through the courts". The case took about a year to reach its conclusion, which included Mr Haag's attempt to have the three summery charges thrown out and challenges as to the legality of the investigation. The decision will be disappointing to the San Francisco-based company, which had fought the case hard in a bid to avoid a legal precedent being set that could harm the fast-growing business. Mr Brenner was the test case; 11 other drivers face similar charges after an undercover sting by the commission caught the unsuspecting drivers between May 28 and August 27 last year in Melbourne's CBD, Southbank and Geelong.

During a discussion over sentencing, Mr Haag argued for a non-conviction, stating Mr Brenner's clean record and his role as a husband and father to two young children. Mr Haag said his client earned about $20,000 annually from driving for Uber. The decision will have wide-ranging ramifications for the Andrews Government, which has grappled with the battle between Uber and the taxi industry, which claims Uber unfairly undercuts them in price because they are not complying with regulations and expensive licences. Uber has refused to obtain hire car licences for its drivers' vehicles, which can cost $40,000 each. In September, Uber made a submission to a government advisory body on the topic asking for its ride-sharing drivers to be included under state law under a new subclass "special purpose vehicles". Public Transport Minister Jacinta Allan said the court decision upheld the validity of the current status of the ride-sharing industry.

"This is a really complex area. It is not just a matter that with the stroke of a pen and overnight changing regulations in the taxi and hire car industry, there is a lots of consequences to work through," Ms Allan said. However, in the wake of the court decision, Ms Allan called on the company and its drivers to consider the law. "They [Uber] have a responsibility and an obligation to act in accordance whatever jurisdiction they are in." A report has been handed to the government and Ms Allan said cabinet had been discussing possible policy and regulatory ideas. Opposition Leader Matthew Guy called on the state government to regulate the industry swiftly to ensure certainty for people who worked in ride-sharing.

"New services in the peer economy like Uber, Freelancer and Airbnb are a part of our economic future," he said. Uber claims that more than 20,000 drivers across Australia work for the company. The ACT legalised Uber in October, the first government in Australia to do so.