Q&A
What does this judgment mean?
Uber will no longer be classed as a digital company, which lets it benefit from more generous EU rules.
Instead, it will be treated as a taxi operator subject to national regulations, requiring it to use only licensed drivers, potentially apply background checks and meet health and safety standards.
How big a blow is this for Uber?
The decision is the latest rebuke for the Silicon Valley firm, which regards itself as an ‘information society service’, merely connecting passengers to a network of cabbies using its smartphone app. After years of legal disputes across Europe, the European Court of Justice’s irreversible decision will limit Uber’s expansion plans by forcing it to comply with each country’s rules.
It also kills off its beleaguered peer-topeer service, called UberPOP, which allowed customers to hail a ride from a non-professional driver.
But while many EU states have taken a tough stance against the company, other countries are free to relax conditions and open the door to Uber in the future.
What will it mean for UK users?
Uber already follows UK regulations that force it to use licensed drivers.
It has insisted the ruling ‘will not change things’ in countries such as Britain, but it will prove embarrassing as it appeals against Transport for London’s refusal to renew its licence in the capital.
British trade union leaders said yesterday that the court’s decision should lead to a review of how the company treats its drivers, following claims of punishing working conditions.