The European Court of Justice (ECJ) has declared that Uber is a transport services company which will mean that it’ll be subject to tighter restrictions. Similar to those that other taxi firms are subjected to. The challenge was brought about by taxi drivers in Barcelona but the ruling will apply across the entirety of the EU, including Britain which has voted to leave the bloc.
In the ruling, the ECJ said:
“[Uber is an] intermediation service, the purpose of which is 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 journey, must be regarded as being inherently linked to a transport service and, accordingly, must be classified as ‘a service in the field of transport’ within the meaning of EU law … It follows that, 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.”
Reacting to the verdict, Uber, which didn’t want to see this outcome, said that ultimately things will not change in most EU countries where the company already operates under transportation law. Uber’s new CEO previously said that it is appropriate to regulate services such as Uber and plans for the company to continue dialogue with cities across Europe.
Uber has been in hot water as of late. Most recently it has been struggling in Britain to continue operating in several cities including London. The company is allowed to continue operating in those cities while it appeals, though. The new CEO at the company has set about trying to rectify problems caused prior to his tenure.
Source: The Guardian | Image via Pixabay
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