An adviser to the European Union’s top court said that Uber provides a transport service and therefore must be licensed.
In a blow to the company, who maintains the app is a digital enabler, it may have to abide by the same strict local laws that govern taxi services in many European countries.
Whilst the opinion of the court advisor might not be legally binding, it is often followed by many judges in the court.
“The Uber electronic platform, whilst innovative, falls within the field of transport: Uber can thus be required to obtain the necessary licenses and authorizations under national law,” said the Court of Justice of the European Union in a statement.
The matter came to the courts after a union of taxi drivers in Barcelona said that Uber led to unfair competition, as well as not having licensed drivers.
“We have seen today’s statement and await the final ruling later this year. Being considered a transportation company would not change the way we are regulated in most EU countries as that is already the situation today,” said a spokesperson for Uber.
“It will, however, undermine the much-needed reform of outdated laws which prevent millions of Europeans from accessing a reliable ride at the tap of a button,”
Uber has caused many a controversy in recent years. Taxi groups have opposed the app and how drivers do not need a license or a meter to drive. The smartphone app uses GPS to allow passengers to order the car online and calculate the fares.
Maciej Szpunar, the advocate general, said that the app does have many regulations that drivers need to abide by.
“All those features mean that Uber cannot be regarded as a mere intermediary between drivers and passengers. In addition, in the context of the composite service offered by the Uber platform, it is undoubtedly transport which is the main supply and which gives the service meaning in economic terms.”
Uber is currently fighting a legal battle with Google’s driverless car unit over allegations that the technology was stolen.