In particular, by ruling that Uber is a transportation service and not a digital one, Europe’s highest court has made it difficult, if not impossible, for Uber to develop so-called peer-to-peer services, which allow almost anyone with a car to use the company’s technology to collect paying Uber customers.
Uber which are available in the United States, are a major component of Uber’s future business plans as it looks to upend the traditional taxi industry — a strategy that, at least Uber in Europe, will come to an end.
In a statement, Uber said the European court’s ruling would not alter its operations in most European countries where it already complies with existing transport rules.
“It is appropriate to regulate services such as Uber and so we will continue the dialogue with cities across Europe,” said Marloes van der Laan, a company spokeswoman. “This is the approach we’ll take to ensure everyone can get a reliable Uber ride at the tap of a button.”
Some European politicians welcomed Wednesday’s announcement, saying that for too long, Uber had thumbed its nose at the rules applying to competing taxi services. Uber has from the beginning exploited the gaps in European and national legislation to exempt itself from a number of economic obligations.
The ruling against Uber had been expected after Maciej Szpunar, a senior adviser to Europe’s highest court, said the Uber company should be viewed as a transportation service, according to a non-binding legal opinion published in May.
Europe’s highest court focused on how Uber’s digital platform was at the heart of how drivers and passengers connected through the Uber company’s smartphone app.
Uber central role in helping to organize people’s journeys, the judges added, showed that Uber is not merely a digital service connecting people independently. Instead, its technology controls how much Uber drivers could charge, how they are paid and who could use their digital platform. Uber connects a non-professional driver using his or her own vehicle with a person who wishes to make an urban journey.
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