In Europe, Is Uber a Transportation Service or a Digital Platform?

In July 2015, a judge in Barcelona referred a case to the European Court of Justice, asking the Luxembourg-based court to determine whether Uber should be treated as a transportation service or merely as a digital platform. If the court decides that Uber is a transportation service, the company will have to obey Europe’s often onerous labor and safety rules, and comply with rules that apply to traditional taxi associations.

Though Uber already fulfills such requirements in many European countries, the ruling could hamper its expansion plans. But if the judges rule that Uber is an “information society service,” or an online platform that merely matches independent drivers with potential passengers, then the company will have greater scope to offer low-cost products like UberPop and other services that have been banned in many parts of Europe. A ruling is not expected before March 2017 at the earliest. The judges may decide to consider Uber a transportation service, an online platform, or a combination of the two, further complicating the legal standoff.