Taiwan government said on Wednesday that it is all set to order Uber Technologies Inc to exit the domestic market for misrepresenting its transportation service business as an internet-based information technology platform.
The Investment Commission of Taiwan that handles the inbound and outbound foreign investments of the country would make a final decision by August 11 and cancel the investment permit of the company.
The Ministry of Transportation and Communications said Uber is registered as an information service company, but in reality it is operating ride services using private drivers without business operation permits in the country.
"Taiwan's government has communicated many times with Uber...The worst scenario is to order (it) to leave the market," Emile Chang, Executive Secretary at Taiwan's Investment Commission, told Reuters.
Chang added that Uber can appeal the decision to Taiwan's cabinet.
The China Post reported that Uber would immediately file a petition against the decision, referring it as "disappointing".
The move comes soon after Uber was taken over by its rival Didi Chuxing in China early this week. It was a major strategic shift for the company after a two-year long battle in a challenging market.
The decision of the Taiwan government added up to a string of official complaints against the global ride-hailing giant. The company has faced similar legal issues in markets across Asia, including Hong Kong and China.
Uber entered the Taiwan market in 2013. Its emergence into the domestic market triggered a massive protest by the domestic drivers.