Toronto Star

EU makes landmark ruling against unregulate­d Uber

Ruling could affect other startups trying to similarly escape accountabi­lity

- AMANDA ERICKSON THE WASHINGTON POST

Uber is a company that people use to hire drivers who transport them from place to place. Even so, the tech giant has long maintained that they’re not, in fact, a transporta­tion company. The company’s leaders argue that they’re simply providing a platform for people to connect with other people, who just happen to want to move them around.

It’s the argument Uber has used to avoid treating its drivers like actual employees who deserve a living wage and benefits. It’s how they’ve tried to wiggle out of liability when drivers cause accidents or assault their passengers.

And it’s how the company explains away its decision to flaunt local laws that regulate how taxi companies operate.

Not anymore — at least, not in Europe.

The European Union’s top court ruled Wednesday that Uber is a transporta­tion service that should be regulated like any other taxi operator. It’s a landmark ruling, one that could make it much harder for startups to argue that they’re simply a button on a smart phone, and therefore not accountabl­e to their workers and clients.

“The service provided by Uber connecting individual­s with non-profession­al drivers is covered by services in the field of transport,” the European Court of Justice (ECJ) wrote in its decision. “Member states can, therefore, regulate the conditions for providing that service.”

The ECJ further explained that Uber “exercises decisive influence over the conditions under which the drivers provide their service.”

Without the app, “persons who wish to make an urban journey would not use the services provided by those drivers.”

The case stems from a complaint by the profession­al taxi drivers’ associatio­n in Barcelona, which argued that Uber’s activities in Spain created unfair competitio­n from the company’s non-profession­al drivers. They also charged Uber with “misleading practices.”

Uber, worth $68 billion (U.S.), operates in 600 cities globally. Since its founding about a decade ago, the company has regularly run afoul of regulators and local legislator­s, along with local taxi drivers. Right now, the company is also fighting for survival in London, its key European market. In September, the city’s municipal transport authority rejected Uber’s applicatio­n for a new license to operate, ruling that the ride-hailing giant is not a “fit and proper” private carhire operator. London Mayor Sadiq Khan says the dispute may take years to solve.

Frances O’Grady, who runs the British Trades Union Congress, hailed the decision in a statement. “Their drivers are not commoditie­s. They deserve at the very least the minimum wage and holiday pay,” she said. “Advances in technology should be used to make work better, not to return to the type of working practices we thought we’d seen the back of decades ago.”

It’s unclear what kind of impact the ruling will have. In recent months, the company has rolled back products such as UberPOP, which allowed riders to hail non-profession­al drivers for a cheap ride. According to the company, Uber already follows the transporta­tion law of most EU countries where they operate. “This ruling will not change things in most EU countries where we already operate under transporta­tion law,” Uber said in a statement. “However, millions of Europeans are still prevented from using apps like ours.”

In fact, the biggest changes might come not to Uber, but to other startups that use a similar model for everything from getting food and groceries delivered to hiring cleaning services or handymen. Right now, European Union law protects online services from undue restrictio­ns. National government­s must inform the European Commission of any potential regulation­s to ensure they are not discrimina­tory or disproport­ionate.

 ?? RYAN REMIORZ/THE CANADIAN PRESS FILE PHOTO ?? The EU case against Uber stems from a complaint by the taxi drivers’ associatio­n in Barcelona that Uber was creating unfair competitio­n.
RYAN REMIORZ/THE CANADIAN PRESS FILE PHOTO The EU case against Uber stems from a complaint by the taxi drivers’ associatio­n in Barcelona that Uber was creating unfair competitio­n.

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