Uber is now a transport company according to the judgment of European Court of Justice:
In its judgment in a case at ride-booking company Uber, European Court of Justice has given its verdict in favor of EU taxi associations. The main defense that Uber lawyers take in the case was that the company was a technology platform. The court rejected their defense and ruled against it.
Uber claims to be the IT Company while EU court rejects:
According to Uber, the main theme of the company is to help people connect and book rides electronically, and that the company in an information service and not a cab firm.
According to the judgment of the Court, the ride-hailing application now falls in the category of taxi firms. Uber now has to follow all the transportation rules and regulations of the region. The company has been facing tons of other legal woes too in many other parts of the world. The battle between EU Taxi associations and Uber started back in the later year. In a bid to deny the allegations put by taxi firms, the ride-booking giant failed to defend itself and fell into yet another controversy.
Uber to comply with strict transportation laws of Europe:
According to Uber spokesperson, the judgment, however, will not put much of a difference as the company is already registered in many European countries as cab/taxi firm. Damien Geradin said in his statement given to politico, “Europe’s single market will now become fragmented with different countries implementing different rules.”
Adding to his statement he also said that the victory belongs to Europe’s cab associations as Uber failed to defend its stance.
Uber as a taxi service needs to implement strict rules and regulations:
Further, in the judgment, the European Court of justice added that for Uber because it has great influence on its drivers, it must be categorized as the taxi company or a transport service. By the definition of a transport service, the company now has to keep more checks on its drivers but also only licensed taxi drivers can use the service. It will now have to meet all the strict health and safety guidelines.
Uber loses the case against a taxi group in Barcelona:
The case started last year when a local cab group filed a case against Uber. The company argued that it was unfair for Uber to operate under one law and the local taxi firms have to operate under the different law. The verdict came after one year in the favor of taxi companies declaring ride-hailing company as a taxi business.