Uber suffered a major blow in Europe after Europe’s highest court declared it as a transport provider and not an internet company. Uber argued it was an information
society service – helping people to make contact with each other electronically –
and not a cab firm. However Uber stated that the ruling would not make a difference in the way it operated in Europe as it already operated under transportation law.
Uber carried on by stating “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, and so we will continue the dialogue with cities across Europe. This is the approach we’ll take to ensure everyone can get a reliable ride at the tap of a button.
Uber labelled itself as an “information society service” that merely connects drivers with passengers through an app. The European Court of Justice has rejected that argument. The Luxembourg court said that a service whose purpose was “to connect, using a Smartphone application and for remuneration, non-professional drivers using their own
vehicle with persons who wish to make urban journeys” must be legally classified
as a transport service.
“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,” the judgment read.