An Uber driver has won a landmark appeal that means the ride-sharing service can operate freely in Victoria.
The court case over a $9 Uber fare is expected to cost taxpayers hundreds of thousands of dollars after Nathan Brenner won an appeal against a $900 fine and charges that he illegally picked up passengers.
In a decision that had effectively outlawed Uber in Victoria, a magistrate last year found Mr Brenner guilty of two counts of operating a commercial passenger vehicle without a licence, and one of driving a commercial passenger vehicle without driver accreditation.
But Victorian County Court judge Geoffrey Chettle on Wednesday dismissed the charges and ordered the Taxi Services Commission pay the costs of Mr Brenner's appeal, led by prominent QC Neil Clelland.
The barrister represented former prime minister Julia Gillard during the royal commission into trade unions, and 32 Essendon players who appealed a world anti-doping ruling in the Court of Arbitration for Sport.
While the appeal costs have not been disclosed, opposition transport spokesman David Hodgett estimates they will be high.
The opposition says the Labor government wasted money fighting Uber instead of regulating the service to provide industry certainty.
"This is not about taxis versus Uber. It's about getting the city on the move again," Mr Hodgett said.
"You need to have a level playing field where both taxis and Uber can co-exist."
Mr Brenner, who used to manage rock groups Men at Work and Split Enz, was fined $900 without conviction in December following a sting operation involving undercover taxi compliance officers.
His appeal heard the $9 fare from that ride couldn't be used as evidence in a criminal prosecution against Mr Brenner.
Mr Clelland argued the "antiquated" definitions in the legislation which apply to commercial passenger vehicles excluded Uber arrangements.
Uber Victoria general manager Matt Denman has called for the state government to now regulate the service.
"The government needs to listen to the hundreds of thousands of Victorians who are choosing ride-sharing every week and introduce sensible, safety-based regulations without delay," he said in a statement.
The Taxi Services Commission is assessing the appeal's implications.
Uber has been given the green light by the ACT, NSW, and West Australian governments, but is banned in the Northern Territory.
The Taxi Services Commission says it is disappointed the appeal succeeded on an "obscure technical argument" and is considering an appeal.
