UBER has been effectively outlawed in Victoria after one of its Melbourne drivers was found guilty of driving a hire car without a licence or accreditation by a Melbourne magistrate.

Nathan Brenner, a former manager of legendary rock groups Split Enz and Men at Work, was one of 12 Uber drivers charged by the Taxi Service Commission (TSC) with operating a commercial passenger vehicle without a licence.

He was charged after being caught in an undercover operation last year.

Mr Brenner, 54, was fined $900 without conviction, but had earlier refused to sign an undertaking to be of good behaviour for 12 months on one of the charges.

Outside court, Mr Brenner was asked whether the refusal to commit to a good behaviour bond was a philosophical objection to the charges, and an indication he may continue driving.

He declined to comment, but his lawyer said the court decision would be reviewed and an appeal considered.

C'mon Melbourne. Thats a joke RT @AleksDevic: Uber has been ruled illegal in Melbourne after a decision in a landmark court case. — Andrew Bogut (@andrewbogut) December 4, 2015

Brenner’s Uber prosecution was a test case for Victoria, setting a precedent and effectively deeming Uber illegal.

Aussie NBA basketballer Andrew Bogut expressed shock at the decision. “C’mon Melbourne. That’s a joke,” he tweeted.

“This case is not about whether Uber is a good or bad thing ... it’s really about your client and what he did,” Magistrate Julian Ayres told Mr Brenner’s lawyer Peter Haag.

“Everyone must obey the law in the general sense, whether that law is liked or not,” Magistrate Ayres said.

Earlier, Mr Haag argued the Productivity Commission had called for greater deregulation in the taxi industry, said other jurisdictions were allowing Uber and the service had been “embraced” by the Victorian community.

“There is no doubt that Uber is responsible in delivering a powerful wakeup call to the taxi industry,” Mr Haag said.

“It is clear your honour there is a disconnect between the Uber service and its uptake in this community and government regulation.”

But prosecutor Morgan McLay asked for Magistrate Ayres to impose a penalty to deter Mr Brenner from further offending.

He also sought the penalty as a warning to others not to breach laws requiring proper licensing and accreditation to operate a commercial passenger service.

“There is no indication that Mr Brenner has, or is going to stop driving,” Mr McLay said.

The court heard Mr Brenner is now an accredited commercial driver but his vehicle is not.

“There is a statutory regime that requires commercial passenger vehicles be authorised,” Mr McLay said.

“There is a statutory regime in place whether Mr Brenner agrees with it or not, he is required to follow the law.”

Brenner was charged after responding to a Uber booking to take two men, actually taxi commission investigators, from the Hilton in East Melbourne to Hotel Como in South Yarra — a $9 fare — on August 21 last year.

A previous infringement notice, issued in June last year was imposed against Mr Brenner, but he otherwise had an unblemished driving history, the court heard.

Public Transport Minister Jacinta Allan said the court decision confirmed that Uber and similar ride-sharing services are an “illegal service”.

“We will have to work through those issues and continue to work with industry in the manner that we have been doing, and dealing with the regulatory issues that come from that,” she said.

Ms Allan said it was a “complex issue”.

“Cabinet is going through this policy and regulatory issues right now,” she said.

Opposition Leader Matthew Guy said the court decision was “more evidence that Daniel Andrews is asleep at the wheel”.

“Daniel Andrews has now had a year to provide certainty and stability to tens of thousands of Victorians who work in the taxi and ride sharing industry. His government has been all talk and no action,” he said.

mark.dunn@news.com.au

media_camera Uber driver Nathan Brenner was used as test case against ride sharing company brought by the Taxi Services Commission.

media_camera Taxi drivers will be celebrating the victory following rallies against Uber. Picture: Ian Currie

“New services in the peer economy like Uber, Freelancer and Airbnb are a part of our economic future. The state of Victoria can’t stop disruptive technological progress.”

Mr Guy said the Coalition “supports the tandem operation of both the taxi industry and Uber”.

Mr Brenner, of Caulfield North, is the first Uber driver to be brought before a Victorian court.

Prior to the case the TSC, the taxi industry watchdog, has been fining drivers $1700 but Uber has been paying the fines.

Another 11 Uber prosecutions are listed to begin at Melbourne Magistrates Court on March 29 next year.

Uber has become a dominate force and many passengers are opting to use its service, using a phone app to book drivers in their own private vehicles, rather than traditional taxis.

matthew.johnston@news.com.au