Four Amsterdam-based Uber drivers were arrested on Sunday for using the app to transport commuters without owning a £157,600 taxi permit, according to Bloomberg.
The news, which saw the drivers fined £3,310, will come as a blow to Uber as it tries to cement its service throughout Europe.
The firm, which operates in over 200 cities worldwide, has seen many cab drivers switch to the service as they can operate unlicensed in many countries.
However, Uber is facing an international crackdown amid fears that it is unsafe for passengers as it uses unregistered drivers.
A Dutch spokeswoman for the ministry of environment and infrastructure’s inspection department, told Bloomberg: “They were arrested and fined because it is illegal to offer these services without the right permits.”
In response to the fine, Uber released a statement: “This action is unjustified and disproportional. We remain in touch with the policy makers to familiarise them with how our technology works and the positive impact it has on mobility.”
If the drivers are caught operating as Uber drivers without a licence again, they could be fined as much as 10,000 Euros, a fee which could remove the financial incentive for future Uber cabbies.