Uber Is a Taxi Service, the E.C.J. Says, in Major Setback to Firm
Posted in: Government & Policy at 20/12/2017 22:38
Uber lost a major legal battle on Wednesday when the European Union’s highest court declared that the ride-hailing app must comply with tough rules governing traditional taxi associations, a significant setback for a company already grappling with a string of scandals.
The decision by the European Court of Justice, which found that Uber is a transportation company rather than an online platform that simply matches passengers with drivers, could thwart Uber’s expansion plans in the region by making it pay costly licensing fees and employee benefits.
Uber to face stricter EU regulation after ECJ rules it is transport firm
Uber is a transport services company, the European court of justice (ECJ) has ruled, requiring it to accept stricter regulation and licensing within the EU as a taxi operator.
The decision in Luxembourg, after a challenge brought by taxi drivers in Barcelona, will apply across the whole of the EU, including the UK.