Taiwan’s Ministry of Economic Affairs Investment Commission — which oversees the country’s foreign investments — said it was poised to revoke Uber’s permit to operate in the country, saying the US company was using its local licence “for a purpose other than the business for which it was issued”.

The commission said Uber had applied for a licence to operate as an “information service” provider in Taiwan, but instead had been running a passenger car service — a business that is not open to foreign enterprises.

The spat is the latest problem to afflict car-hailing apps — Uber and rival Lyft have long encountered opposition from authorities and taxi companies around the world — just as neighbouring China issued ground-breaking regulations to legalise the industry.

Uber and Didi Chuxing, China’s local app champion, on Monday announced an agreement to merge Uber’s China operations into Didi, giving its investors a 20 per cent stake in the Chinese company.

Uber entered the Taiwan market in 2013, triggering anger from domestic taxi drivers, who have staged protests against the group as recently as July.

“Uber is committed to Taiwan and to the tens of thousands of Taiwanese riders and drivers who rely on Uber every day,” said Uber Taiwan in a statement on Wednesday.

“We want to work with the Taiwanese government to help them understand the role of technology in creating economic opportunity and meeting the transportation needs of Taiwan.”

The commission said that a final decision would be made by August 11.

“It is our hope they will rule in favour of innovation, recognising ride-sharing as part of the solution, and open a meaningful dialogue with Uber,” said Uber.

(Published by Financial Times - August 3, 2016)