Uber has been officially declared a transport company as opposed to a technology service, the European Court of Justice (ECJ) has ruled.
The ruling will be mean that the company will have to comply with stricter European transport regulation rules, which had attempted to evade by classifying itself as a computer services business.
An Uber spokesperson said: “This ruling will not change things in most EU countries where we already operate under transportation law.
“However, millions of Europeans are still prevented from using apps like ours. As our new CEO has said, it is appropriate to regulate services such as Uber and so we will continue the dialogue with cities across Europe. This is the approach we’ll take to ensure everyone can get a reliable ride at the tap of a button.”
According to the ruling, the ECJ said that a service whose function was “to connect, by means of a smartphone application and for remuneration, non-professional drivers using their own vehicle with persons who wish to make urban journeys” must be considered as “a service in the field of transport” in EU law.
It continued, “As EU law currently stands, it is for the member states to regulate the conditions under which such services are to be provided in conformity with the general rules of the treaty on the functioning of the EU.”
Uber has faced a series of setbacks throughout the year, which culminated in the resignation of co-founder and CEO, Travis Kalanick back in June.
One major blow to the company occurred in September, when Transport for London (TFL) revoked its license to operate, after not deemed a “fit and proper” private car hire operator.
The ban proved controversial among Londoners, dividing opinion over the decision. Whilst some praised the move for standing up to corporate business amid far from scrupulous driver checks, others condemned the inconvenience it would cause.