I quoted Rob from his original post....
"The service charge is NOT anything the restaurant wants it to be. It is a line item on the business accounting and is shared among all hourly employees. That includes the servers, the cooks, the dishwashers, the groundskeepers, the maintenance folks, etc. It is illegal to have a service charge on the bill if it is not shared. The fine has been raised to discourage any misuse of these shared service charges to the employees."
This no different than any other country where tipping is accepted.