The European Court of Justice (ECJ)ruled yesterday (20 December) that Uber is a transport company for the objective of employing drivers, as opposed to the "information society service" it had claimed - a decision that may make its appeal against a United Kingdom ruling that its drivers are workers less likely to succeed.
The ruling says that as a transport service, Uber will be excluded from the scope of the freedom to provide services in general as well as "on services in the internal market and the directive on electronic commerce".
The case arose after Uber was told to obey local taxi rules in Barcelona.
An Uber spokesperson said: "This ruling will not change things in most European Union countries where we already operate under transportation law".
"The service provided by Uber connecting individuals with non-professional drivers is covered by services in the field of transport", the European Court of Justice (ECJ) said. As per the reports of Bloomberg, the EC verdict is that the company should be delimited as a normal transport service.
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The judgement came for a court case originates which from legal action filed by Elite Taxi, a Barcelona-based association of taxi drivers who claimed Uber was Uber for operating its low-priced Uberpop service without the necessary taxi licences and authorisation from the city.
London Mayor Sadiq Khan said that while he wanted London to be the home of innovation and new technology, Uber simply were not "operating by the rules set down by Parliament". Nonetheless, Uber maintains that it will continue to pursue dialogue with various cities in the region to ensure that as many people as possible can use the app.
Frances O'Grady, general secretary of the Trades Union Congress in the United Kingdom, lauded the decision.
"After today's judgmentb innovators will increasingly be subject to divergent national and sectoral rules", said Jakob Kucharczyk, of the Computer & Communications Industry Association, which speaks for companies like Uber, Amazon.com Inc., Google and Facebook Inc.
She added: "Their drivers are not commodities".
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Sharing the same viewpoint, Vu Van Vien, Director of Ha Noi Department of Transport, said that banning "technology" taxi companies was not an appropriate solution but agreed regulating them could work. Advances in technology should be used to make work better.
Harford has worked for and competed with Khosrowshahi, 48, in the online travel business.
Drivers signed up to the ride-hailing app could now be forced to obtain similar licenses and authorizations to carry passengers. It's the last thing that Uber needed this year, especially when you consider the turbulence that the company has gone through in 2017.
"There has also been a benefit in incumbent London taxi cabs, which are now taking credit cards, which they resisted for years".
Peacock said that although the review's "heart was in the right place with good suggestions", its future was in doubt.
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