Uber is usually a taxi company, according to a landmark ruling through Europe’s highest court.
The European Court of Justice (ECJ) ruled Wednesday of which the U.S. ride-hailing app is usually a transportation firm and also also also not a digital company. The verdict is usually a long-awaited judgment anticipated to have major implications for how Uber is usually regulated throughout Europe.
“The service provided by Uber connecting individuals with non-professional drivers is usually covered by services inside field of transport,” the ECJ said. “Member states can therefore regulate the conditions for providing of which service,” the idea added.
Uber has long-considered itself an “information society service” which connects drivers and also also also passengers through inter-mediation via their app. This particular subtle classification has helped to protect the multi-billion dollar start-up through national regulations and also also also means the idea has been treated as a digital service operating across borders inside EU’s single market.
However, several European governments have argued the U.S. company should be considered a taxi firm, and also also also just like thousands of others, the idea should have to comply with European transport laws.
“This particular ruling will not change things in most EU countries where we already operate under transportation law. However, millions of Europeans are still prevented through using apps like ours,” an Uber spokesperson said in an email shortly after the decision.
The ECJ’s decision means Uber at This particular point faces national regulation in up to 28 member states, forcing the idea to deal more closely with local governments of which set transportation rules and also also also licensing requirements. This particular particular case cannot be appealed, according to Reuters, although the idea can pursue legal challenges in some other courts.