Uber suffers setback as EU court aide says it’s more than an app

Bloomberg

Uber Technologies Inc. suffered a legal setback in its fight against being regulated as a traditional taxi service, after an adviser to the European Union’s top court rejected the argument that the car-hailing application is just that, an app.
The question has vexed regulators and lawmakers across the region for years and Thursday’s non-binding opinion gives an indication that Uber might not be able to shake off national restrictions, such as the obligation to get a license or other authorizations.
“The Uber electronic platform, whilst innovative, falls within the field of transport,” Advocate General Maciej Szpunar, of the EU Court of Justice, said in a statement on his opinion in Luxembourg on Thursday. “Uber can thus be required to obtain the necessary licenses and authorizations under national law.”
The car-hailing application accessed via smartphones and tablets has faced roadblocks, real and regulatory, across Europe, amid complaints brought by taxi drivers who say the company tries to unfairly avoid regulations that bind established competitors. Uber sees itself as an app, and defended that position last month again in the EU court in a separate, French case, which continued to puzzle the EU’s top judges.
Uber claims it should be exempt from the obligations normal transportation operators face under EU rules. Its lawyers told the court last year that the company’s activities can’t be reduced to a mere transport activity. In a statement, Uber said it will now wait for the final decision which will likely come later this year.

NEEDED REFORM
“Being considered a transportation company would not change the way we are regulated in most EU countries as that is already the situation today,” Uber said in the statement. “It will, however, undermine the much-needed reform of outdated laws which prevent millions of Europeans from accessing a reliable ride at the tap of a button.”
The EU court’s decision, expected in a few months, will be binding and can’t be appealed. The court hasn’t shied away in previous decisions from taking a strong stance in cases involving big US tech giants. In 2014, the court forced unexpected changes on Google by creating a right to be forgotten in a ruling that allows people to seek the deletion of links on search engines if the information was outdated or irrelevant.
San Francisco-based Uber has faced a series of setbacks in Europe as it competes with traditional taxi services by letting private drivers contract with it for fares it solicits through a mobile-device app. In March, Uber said it would close its service in Denmark ahead of regulation changes it said would make its app unworkable for consumers. Uber has also run into regulatory problems in Germany, the UK and France.