Uber Technologies appeared in Europe’s highest court on Tuesday to defend its status as a digital service, rather than a transport company. The company has come under harsh criticism from local taxi companies and regulators across the EU since launching in the European market five years ago, with many accusing the tech start-up of illegally operating a transport service that is not subject to the same safety and licensing regulations as its competitors.
Challenge to the share economy
Should the European Court of Justice rule in favour of reclassifying Uber as a transport company, it will then need to comply with stricter regulations around licensing, safety and insurance. While it will certainly moderate Uber’s competitive advantage over other taxi operators, it may also hinder efforts in Europe to keep pace with the rapid ascent of e-commerce companies in Asia and the United States. The landmark ruling will likely carry knock-on regulatory effects for other digital start-ups in the European share economy, including accommodation platform Airbnb and food delivery service Deliveroo.
Disruptive, but not illegal, says Uber
The company has appointed Cuatrecasas, Gonçalves Pereira anti-trust, M&A and EU affairs attorney Cani Fernández to lead the charge to keep Uber classified as a digital service under EU laws. ‘Uber is part of a wave of technology that radically changes the way we shop [and] obtain information,’ she told the EJC this week. ‘Uber contributes to linking drivers and passengers more efficiently,’ she added, also citing the contributions made by ride-sharing apps to reducing pollution, freeing up parking and generally facilitating ease of movement in cities. An ECJ advisor is expected to give a non-binding opinion on the case in the coming months before the judges deliver a verdict.
Sources: National Law Journal; Economic Times; The Guardian
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