European Court of Justice rules Uber as a Transport service

The European Court of Justice has ruled against Uber, concluding it to be a transport service, which will require it to have stricter regulation and licensing as a taxi operator within the EU. The decision follows a challenge presented by taxi drivers in Barcelona who were seeking a declaration from a court in 2014 that activities of Uber Systems Spain, amounted to misleading practices and acts of unfair competition.
December 22, 2017 Read time: 2 mins
The European Court of Justice has ruled against 8336 Uber, concluding it to be a transport service, which will require it to have stricter regulation and licensing as a taxi operator within the EU. The decision follows a challenge presented by taxi drivers in Barcelona who were seeking a declaration from a court in 2014 that activities of Uber Systems Spain, amounted to misleading practices and acts of unfair competition.


In its judgement, the court ruled that “an intermediation service such as that at issue in the main proceedings, 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 journeys, 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 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.”

Additionally, the court stated that Uber's services were more than intermediation as it was indispensable for drivers and passengers who want to make an urban journey. It also pointed out that the company exercises decisive influence over the conditions under which the drivers provide their service.

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Enforcement

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