UPDATE Dec. 7 2:57 p.m. AEDT: The Taxi Services Commission released a statement, saying: "Today's decision vindicates the actions taken by the TSC to enforce the law as it currently stands. The TSC has remained committed to enforcing the law and has acted consistently by holding drivers acting illegally to account. The TSC will continue to take compliance action against ride-sharing services that are found to be operating illegally."

Uber's questionable legality in the Australian state of Victoria could be determined by a landmark court case.

A court has ruled UberX driver Nathan Brenner​ was guilty of driving a hire car without a commercial licence or registration on Friday, in a report by The Age.

According to the report, Brenner was caught by two undercover taxi compliance officers from Victoria's Taxi Services Commission in August 2014, where Magistrate Julian Ayres believed that Brenner fully knew that he was driving a car hire service in exchange for payment.

Licensing is required for commercial drivers, and can cost around A$40,000 (US$29,280.)

Brenner was fined A$900 (US$658) for driving a car without holding a commercial license or registration, with no conviction recorded.

This was increased after Brenner refused to agree to the judge's original penalty of A$500 (US$365) and a good behaviour bond, if he agreed to not drive or own a vehicle used for ride-sharing without the required licensing.

In a statement to Mashable Australia on Friday, Uber Australia said: “We are disappointed in the outcome of today’s hearing and we will continue to support Mr. Brenner as he appeals this decision."

Uber maintains that it will continue running in Victoria, ensuring that the public acknowledge "that this matter is related to one individual and the unique circumstances of his case."

The ruling serves as a blow for Uber, who have been pushing the Victorian government to legalise ride sharing.

"It is widely acknowledged that the current legislation could not have contemplated technology such as Uber. The legislation clearly needs to be updated," according to Uber Australia in their statement.

Eleven other drivers face similar charges, with Brenner being the test case. The Taxi Services Commission caught drivers between May 28 and Aug. 27 in 2014, according to The Age.

The Taxi Services Commission have been contacted for comment.