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You can find the current article at its original source at https://www.theguardian.com/technology/2017/dec/20/uber-european-court-of-justice-ruling-barcelona-taxi-drivers-ecj-eu
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Uber to face stricter EU regulation after ECJ rules it is transport firm | Uber to face stricter EU regulation after ECJ rules it is transport firm |
(35 minutes later) | |
Uber is a transport services company, the European court of justice (ECJ) has ruled, requiring it to accept stricter regulation and licensing within the EU as a taxi operator. | |
The decision in Luxembourg, after a challenge brought by taxi drivers in Barcelona, will apply across the whole of the EU, including the UK. | The decision in Luxembourg, after a challenge brought by taxi drivers in Barcelona, will apply across the whole of the EU, including the UK. |
Uber had denied it was a transport company, arguing instead it is a computer services business with operations that should be subject to an EU directive governing e-commerce and prohibiting restrictions on the establishment of such organisations. | |
Lawyers for Barcelona’s Asociación Profesional Elite Taxi argued that Uber was directly involved in carrying passengers. EU rules on the freedom to provide services expressly exclude transport. | Lawyers for Barcelona’s Asociación Profesional Elite Taxi argued that Uber was directly involved in carrying passengers. EU rules on the freedom to provide services expressly exclude transport. |
In its ruling, the ECJ said an “intermediation service”, “the purpose of which is to connect, by means of a smartphone application and for remuneration, non-professional drivers using their own vehicle with persons who wish to make urban journeys, must be regarded as being inherently linked to a transport service and, accordingly, must be classified as ‘a service in the field of transport’ within the meaning of EU law”. | |
“Consequently, such a service must be excluded from the scope of the freedom to provide services in general as well as the directive on services in the internal market and the directive on electronic commerce,” the ruling said. | “Consequently, such a service must be excluded from the scope of the freedom to provide services in general as well as the directive on services in the internal market and the directive on electronic commerce,” the ruling said. |
“It follows that, as EU law currently stands, it is for the member states to regulate the conditions under which such services are to be provided in conformity with the general rules of the treaty on the functioning of the EU.” | “It follows that, as EU law currently stands, it is for the member states to regulate the conditions under which such services are to be provided in conformity with the general rules of the treaty on the functioning of the EU.” |
The ECJ found Uber’s services were more than an intermediation service. It observed that the Uber app was “indispensable for both the drivers and the persons who wish to make an urban journey”. | |
The court also pointed out that Uber exercises “decisive influence” over the conditions under which drivers provide their services. Such an intermediation service, the ECJ concluded, must be regarded as forming an integral part of an overall service, the main component of which is transport. | |
Within the UK, it may be noted that the ECJ, having been repeatedly derided by Brexit supporters, appears to have come to the rescue of hard-pressed taxi drivers across Britain and Europe. | |
Uber said: “This 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 and so we will continue the dialogue with cities across Europe. This is the approach we’ll take to ensure everyone can get a reliable ride at the tap of a button.” | |
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