Uber Faces Stricter Regulation across Europe after European Court Rules it is a Transport ServiceEuropean Court of Justice disagrees that it is an "information society service"The EU's top court has ruled that Uber is a taxi service
and can be regulated like other transport firms. The decision could have
serious consequences for how Uber, and other gig economy firms*, can operate
across the continent. Uber had described itself as an "information society
service" that only connects drivers with passengers through an app. The
European Court of Justice has rejected this argument. The Luxembourg court said
that a service whose purpose was to connect, by a smartphone app and for
payment, non-professional drivers who use their own vehicles with people who
want to make urban journeys, must legally be categorised as a transport
service. The judgment is final and Uber cannot appeal against it, meaning that it
will face stricter regulation across the EU's 28 member states. The US firm has
angered local taxi operators and regulators, many of whom say that it has been allowed
to operate with little supervision. States are now free to impose restrictions
or conditions on Uber, just as they can with any other mini-cab service. Before
the judgment, a spokesperson for Uber said: "Any ruling will not change
things in most EU countries, where we already operate under transportation law.
"However, millions of Europeans are still prevented from using apps like
ours. As our new CEO has said, it is appropriate to regulate services such as
Uber. "We want to partner with cities to make sure everyone can get a
reliable ride at the tap of a button." A Spanish taxi drivers' association
brought the case to court, arguing that Uber is a taxi company and should obey
the same rules as similar businesses. It is the latest problem for Uber, which
has faced a number of legal challenges around the world. Transport for London,
(the company which manages London's transport networks), refused to renew
Uber's licence, mainly because people are worried about safety. Uber has
appealed the decision and will be free to operate in London until the end of
the legal process. The company also lost a separate appeal in the UK, against a
ruling that said its drivers were workers and must be allowed proper legal
rights. This means that the Californian company will have to pay drivers in the
UK minimum wage, sick pay, and holiday pay. Uber has said it will appeal
against the ruling.
Adapted
from the Independent, by Ben Chapman, 20th of December 2017
*gig economy firms:
companies which don't employ people full-time but pay workers as freelancers or
on short-term contracts
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