EU Court: Uber is a Taxi Service

The European Court of Justice ruled on Wednesday that ride-hailing service Uber was a transportation business and not merely a technology platform that connects passengers with drivers.

“The service provided by Uber connecting individuals with non-professional drivers is covered by services in the field of transport,” the court said in a statement. “Member States can therefore regulate the conditions for providing that service.”

The ruling from the European Union’s highest court is a major setback for Uber and is likely to affect how EU governments regulate the firm. It will force Uber to comply with EU transportation rules and regulations and may limit options for Uber to use non-professional drivers in its cars.

The ruling stemmed from a case filed by a taxi association in Spain, which argued that Uber’s operations in that country were unfair competition. The case looked at UberPop, a peer-to-peer service that lets virtually anyone with access to a car accept rides from Uber customers.

UberPop has since been withdrawn from several European markets although it is still offered in Estonia, Finland, Poland, and the Czech Republic.

(Photo: Accura Media Group)