EU rules that Uber is a transport service, not a digital company

Uber is a transport company, according to a landmark ruling from Europe's highest court.

The European Court of Justice (ECJ) ruled Wednesday that the U.S. ride-hailing app is a transportation firm and not a digital company. The verdict is a long-awaited judgment expected to have major implications for how Uber is regulated throughout Europe.

"Any ruling will not change things in most European Union (EU) countries where we already operate under transportation law. However, millions of Europeans are still prevented from using apps like ours," an Uber spokesperson said in an email ahead of the decision.

Uber has long-considered itself an "information society service" which connects drivers and passengers through inter-mediation via their app. This subtle classification has helped to protect the multi-billion dollar start-up from national regulations and means it has been treated as a digital service operating across borders in the EU's single market.

However, several European governments have argued the U.S. company should be considered a taxi firm, and just like thousands of others, it should have to comply with European transport laws.

The ECJ's decision means Uber now faces national regulation in up to 28 member states.

Greg Marsh, co-founder and CEO of onefinestay, told CNBC on Wednesday that the majority of Uber drivers "really value" the company and the ride-hailing service was clearly "wildly popular" among consumers.

"If the majority of people want to use it as consumers and if a large proportion of the people who want to participate in it as drivers want it to exist then it seems a bit illiberal to say that we should be preventing it from operating," he added.

In 2014, a group called Elite Taxi in Barcelona asked a court in the city to impose penalties on Uber's operations in the country. The association claimed that Uber was engaging in unfair competition towards Elite Taxi's drivers, particularly with its UberPop service, which allowed non-licensed drivers to pick up passengers via the app.

The case was escalated eventually to the European Union's highest court – the ECJ – for advice.

Advocate General Maciej Szpunar said in May that, in his opinion, Uber is not an "information society service". To be considered such would mean the part of the service which is not made by electronic means is "economically independent" of the service. In Uber's case, the drivers would need to be "economically independent". Another factor to be considered is whether Uber provides the entire offering. For example, an online retailer has a website or app as well as shipping the goods it sells. In Uber's case, this would mean it essentially employs the drivers. Uber has said that its drivers do not work for the company and are independent.

The ECJ advisor said that Uber does not meet either of these two conditions and is therefore a transportation company.

TAXI LEAKS EXTRA BITS :

As a result of the Court Ruling and assuming Uber can't be allowed to appeal an illegal licence, do Tfl by allowing Uber to continue accept responsibility for all Uber drivers, their insurance and any claims made against them, extending this to Tfl issued Badges around Country..???