Uber, the widely-popular and often controversial car service, was declared “a service in the field of transport,” and not an “information society service” by the European Court of Justice Tuesday. The effect of the ruling is that Uber is subject to the transport laws of each EU country it operates in, and cannot claim freedom from regulation, as it would have had as just a digital service.
Uber has claimed that it is just an intermediary between independent drivers and customers, and that it simply helps them ‘share’ rides. However, the court ruled that “an intermediation service such as that at issue in the main proceedings… must be regarded as being inherently linked to a transport service and, accordingly, must be classified as ‘a service in the field of transport’.”
The ruling’s practical impact will vary by country and even by city. In some European countries, it operates under regulations, in some it is still fighting regulation although it says it accepts it in principle, and in some places it is banned, either because of violations of license (as in London, where it is appealing the loss of its license) or because of local rules.
Uber, and other similar operations, have been particularly the target of protests and strikes by operators in the traditional cab industry, who regard it as unfair competition, often undercutting hard-won wages and benefits.
