EU Court slams Uber on calling itself a tech company not a taxi service provider

Luxembourg, December 21: European Union’s top court has slammed Uber for calling itself as a tech company not a transport company. Uber says that it shouldn't have to follow the same rules as transport companies. This was not digested by the European Court.

The European Union’s top court has ruled that Uber should be regulated like a taxi company, a move that could have major implications for how the popular ride-hailing app does business in Europe — and raises questions about its future in the US. That means the company could be regulated differently in the European Union's 28 countries.

The local cab drivers were opposing the company to call itself as a technology company which was backed by the EU court. The company could face new licensing fees and also raises questions over whether the company could be obligated to provide employee benefits to drivers.

In most countries, the laws around Uber are lighter than those that dictate transportation services. So Uber may need to shift its business model to abide by new regulations.

Uber "must be classified not as 'an information society service' but as 'a service in the field of transport'" the court said in statement.

The European Court of Justice Case has its roots in a 2014 battle between Uber and Spanish taxi company Elite Taxi. At that time, a Spanish judge ordered Uber to end all operations in the country, saying its drivers had no official authorization to operate and unfairly competed with licensed taxis. The judge then referred the case to the European Court of Justice in July 2015. Uber began operations in Spain again in 2016 abiding with local regulations.