The European Court of Justice (ECJ) has decided that Uber is a transport company and not a digital service as the ride-sharing firm had contended.
Uber contended that it was an information society service – giving an approach to people to reach each other electronically – and not a cab firm.
The case began in Barcelona where the local authority revealed to Uber it must be subject to its local taxi directions.
Uber had before said a negative verdict would not influence its operations.
In its verdict, the ECJ said that a service whose purpose was “to connect, by means of a smartphone application and for remuneration, non-professional drivers using their own vehicle with persons who wish to make urban journeys” must be classified as “a service in the field of transport” in EU law.
It added: “As EU law currently stands, it is for the member states to regulate the conditions under which such services are to be provided in conformity with the general rules of the treaty on the functioning of the EU.”
Prior to the verdict was conveyed, Uber said it was certain that a decision against it would have little effect to how the firm works in European nations where it meets national controls, including the UK.
A spokesperson said: “Any ruling will not change things in most EU countries, where we already operate under transportation law.
“However, millions of Europeans are still prevented from using apps like ours. As our new CEO has said, it is appropriate to regulate services such as Uber.
“We want to partner with cities to ensure everyone can get a reliable ride at the tap of a button.”
The verdict comes after Uber was advised a month ago that the appeal to restore its license in London could take years, as per Mayor Sadiq Khan.
Transport for London esteemed Uber unfit to run a taxi service and declined to reestablish its license in September.
Its license ran out in October, yet its drivers can keep on working in London while it tries to appeal.
Source: BBC
