Published: Wed, December 20, 2017
Science | By Hubert Green

Top EU court: Uber should be considered a transport company

Top EU court: Uber should be considered a transport company

The decision can not be appealed.

In its ruling, the ECJ said that a service whose goal was "to connect, by a 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 classfied as "a service in the field of transport" according to European Union law.

Uber argued that it should instead be treated as technology platform that connects drivers and riders.

"Member states can therefore regulate the conditions for providing that service", it said.

The decision by the European Court of Justice is a major setback for Uber, which had said that it should not be subjected to the same regulations as traditional taxi companies.

The court said in a statement that services like Uber must be classified as "a service in the field of transport". The landmark ruling will require Uber to treat its drivers more like employees. The case is yet another thorn in the side for scandal-rocked Uber, which has drawn the fury of local taxi drivers and officials for flouting local regulations.

One implication of the ruling is that the company will now be regulated as transport company, meaning that rules can be set at country level.

Uber has previously insisted that the outcome of this case will not affect its business.

It could also cause expansion and growth issues.

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