Europe’s Top Court Rules Uber is a Taxi Service

The European Court of Justice has decreed that the ride-hailing app offered by Uber Technologies Inc. is a transport service, meaning that Uber may be regulated as a taxi operator.

Uber had argued its smartphone app is merely a digital smartphone link between riders and independent drivers. But the European Union’s top court ruled otherwise, declaring that Uber “exercises decisive influence” over the conditions under which drivers provide service and thus is subject to regulatory practices set by EU member countries.

The case was prompted by a complaint filed by a taxi operators’ association in Spain. The group asserted that Uber’s lowest-price service, UberPOP, constituted unfair competition because it ignored local regulations and employed nonprofessional drivers. Reuters notes Uber has discontinued UberPOP in much of Europe and now adheres to local transportation regulations.

IRU, the international transport group, applauds the ruling. But the Computer & Communications Industry Assn. says the decision will hamper efforts to harmonize EU rules that apply to “online intermediaries” by permitting a patchwork of national-level regulations in the region.