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In March, Toronto Police conducted a week-long undercover sting on unlicensed taxicabs, resulting in charges against 11 UberX drivers. But on Wednesday, the prosecutor dropped one of the two charges facing each of the drivers.Robert Galbraith/Reuters

An Ontario court has dropped half of the 22 charges facing a group of UberX drivers in Toronto, saying there is no reasonable prospect of conviction.

In March, Toronto Police conducted a week-long undercover sting on unlicensed taxicabs, resulting in charges against 11 UberX drivers. But on Wednesday, the prosecutor dropped one of the two charges facing each of the drivers – the charge that prohibits operating a "commercial motor vehicle" without commercial license.

"The prosecution and the defence both agreed that my clients were not driving commercial motor vehicles as that phrase is defined in the Highway Traffic Act," said lawyer Gerald Chan, who is representing all 11 Uber drivers. He did not elaborate on how the drivers' actions did not fit the definition, though the Highway Traffic Act has specific criteria for the vehicle type and size of what constitutes a commercial motor vehicle.

"These charges should never have been laid," Mr. Chan said. "The prosecution very fairly and promptly dropped these charges once it recognized the problem, so that the city will not have to spend more resources pursuing charges that never should have been laid."

All 11 drivers are still facing one charge each of picking up a passenger for compensation without an appropriate licence or permit.

The case against the Uber drivers come at a critical point for the company and its future in Toronto. Earlier this month, lawyers for the City of Toronto argued in Ontario Superior Court that the Silicon Valley-based company, which operates a mobile app which allows ordinary drivers to operate their cars as private taxis, should be shut down. Unlike licensed taxicabs, UberX drivers do not abide by municipal regulations which require a taxi license and commercial insurance in order to operate.

That case is awaiting a decision from Ontario Superior Court Justice Sean Dunphy.

The company has also been subject of endless political debate at Toronto City Hall, as city council and staff struggle to regulate the company and its service. Mayor John Tory has been on the record as supportive of creating new regulations for transportation companies like Uber, while other councillors – and the taxi industry – have argued vehemently against it.

When reached for comment about Wednesday's events, Uber spokeswoman Susie Heath did not directly address the charges, but instead spoke of the benefits Uber provides, including jobs for drivers.

"We look forward to continuing our work with Mayor Tory and city council and thank them for their collaboration as we work together towards permanent ridesharing regulations in Toronto," she said in a statement.

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