The San Francisco-based ride-sharing company could lose its fight in the European Union against being regulated as a traditional taxi service, but appears to be driving ahead in new business areas, such as freight transportation.
An EU court has rejected the argument that Uber is simply an app that connects drivers to passengers, meaning it could face a greater regulatory burden as a transportation provider. Uber Technolgoies Inc. suffered a legal setback in the European Union in its fight against being regulated as a traditional taxi service.
EU Court of Justice Advocate General Maciej Szpunar on Thursday rejected the argument that Uber is simply an app that connects drivers to passengers, noting how the company is also in fact a transportation service. Taxi drivers across Europe have said Uber tries to unfairly avoid regulations that bind established competitors.
“The Uber electronic platform, whilst innovative, falls within the field of transport,” Szpunar said. “Uber can thus be required to obtain the necessary licenses and authorizations under national law.”
Szpunar’s non-binding opinion is an indication that Uber might not be able to shake off national restrictions, such as the requirement to get a license or other authorizations, according to a report […]