A EU court has just ruled that the U.S.-based taxi app firm Uber is by no means a digital company as the firm has said for years. The European Court of Justice (ECJ) thinks the company is a transportation firm and should follow transportation regulations across the union.
Uber said that it was a digital firm since it helps people connect electronically when it was asked by Barcelona to follow the city’s taxi rules. While the U.S. firm said that the recent ruling would have a minimum impact on its way of operating in Europe, industry experts predict far-reaching implications.
This ruling will not change things in most EU countries where we already operate under transportation law,
a spokesman for the firm said after the decision.
Nevertheless, the Uber app is unreachable for millions of Europeans as governments seek to regulate such services despite Uber’s staunch opposition. The ride-hailing service pledged to continue talks with European cities.
Uber Is A Transportation Firm
The ECJ found that a company that enables people to connect via an app with the purpose of remuneration while using paid drivers who drive their own cars for money should be considered a transportation company.
The court also ruled that it is up to each European country to regulate such services in a manner that fully matches the general legal framework governing the transportation sector across the EU.
- Since its creation more than 10 years ago, Uber has been able to bypass transportation laws claiming that its business model is different from that of a cab firm.
- Uber has claimed that it is just a digital intermediary between drivers and passengers looking for a ride.
- In other words, Uber considers it doesn’t have to follow the financially-burdening national licensing laws like traditional taxi firms do.
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