Uber can recognize in Europe a transport company

13 May 2017, 20:29 | Technologies
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The adviser to the European Court of Justice stated that Uber should be regulated as a transport company. This can radically change the fate of service in the European Union.

Maciej Szpunar, general counsel for the European Court of Justice, said that Uber "can not be considered a mere intermediary between drivers and passengers", so "must obtain the necessary licenses and permits in accordance with national legislation". The application is not binding, but the court usually listens to the advice of the general counsel. The final decision should be taken this year.

The main theme of the proposal is whether regulators should accept Uber and similar services as transport companies or digital platforms. If the court recognizes Uber as a transport company, strict labor and safety rules will apply to it, which must be followed by traditional taxi drivers associations. Otherwise, the company will be able to continue to provide low-cost services.

Shpunar believes that Uber can not be regarded as a digital platform, since the provision of transportation is "the main component" of the economic activities of the company. "Communication service between passengers and drivers through the application for smartphones - a secondary component", - the general counsel. He added that "Uber monitors the economically important aspects of urban transport services offered through the platform".



The Barcelona Legislature passed the case to the European Court in 2015. The Spanish association of taxi drivers filed a lawsuit in 2014: it claimed that Uber practices unfair competitive methods. Later, the company suspended operations in Spain, but in 2016 agreed to hire taxi drivers with a license and returned to the country.

Since 2011, when Uber started to work in Europe, the company has repeatedly had problems with regulators. She faced lawsuits and bans in France, the Netherlands, Italy and Germany.




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