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EU Court to Decide Whether Uber is Transportation Service Provider or Just a Digital App

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Published on : Dec 20, 2017

On Wednesday, December 20, 2017, the leading European Union (EU) court will give the verdict in an anticipated case, which will clear the air regarding a debate, making round all across Europe that whether Uber, the world’s leading ride-hailing app, is just a digital enterprise or a company that provides transportation services. While a verdict establishing Uber as a transport firm is very unlikely, however if it happens, it will change the way Uber operates almost immediately by giving local authorities in the European Union a go-ahead to regulate the U.S.-based company more like a conventional taxi service provider, with various obligations, such as licensing and insurance.

The company, which has had a clash with the local as well as national watchdogs in Europe since its introduction to the region, i.e. from the last six years, claims that it is just a digital app, which plays the role of an intermediary between customers, who are looking for a ride, and the drivers. The bench of the judges at the Luxembourg court, today, will give its verdict on whether Uber offers online services, transport services, or a combination of both. The European Union law safeguards online services from unwarranted restrictions and the national governments must inform the European Commission of any implementation of measures or norms regulating them so it can make sure they are not disproportionate or discriminatory. On the other hand, transport services, are modulated at the national and the domestic level and there is no prior European Union oversight of novel regulations.

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