Uber suffers bloody nose in its fight to conquer Europe

Uber suffered a setback to its global expansion plans Thursday when a senior adviser to Europe’s highest court recommended that the ride-hailing company comply with the region’s tough transportation rules, potentially hobbling growth of its service across the Continent.

The nonbinding opinion comes as Uber faces growing pressure worldwide after a string of missteps by its executives angered regulators and raised questions about the leadership of Travis Kalanick, the company’s chief executive.

The European case centers on whether Uber should be considered a transportation service or a digital platform that merely connects independent drivers and potential passengers. By designating Uber a transportation service, Maciej Szpunar, an advocate general at the European Court of Justice in Luxembourg, said Thursday that the company should comply with European countries’ safety rules, as well as with other legislation that applies to the traditional taxi associations that are Uber’s main rivals across the region.

“Uber cannot be regarded as a mere intermediary between drivers and passengers,” Szpunar wrote in an opinion that will be reviewed by the European Court of Justice, which is expected to make a final ruling by late summer.

“It is undoubtedly transport which is the main supply and which gives the service meaning in economic terms,” Szpunar added. “The service amounts to the organization and management of a comprehensive system for on-demand urban transport.”

The opinion represents a bloody nose but not a full knockout for Uber in its ongoing fight in Europe, a region still crucial to the company despite rapid expansion in emerging markets like India. Uber has gained traction across the Continent, despite some restrictions or outright bans on some of its services, including on UberPop, its low-cost offering.