Uber to face stricter regulation after EU officially rules it is transport company

LUXEMBOURG — Uber is faced with stricter regulation and licensing after the European Court of Justice (ECJ) in Luxembourg ruled on Wednesday that it is a transport firm instead of an information society service.

The decision will apply across the European Union (EU), including Britain.

"This ruling will not change things in most EU countries where we already operate under transportation law," said an Uber spokesperson.

Before the ruling of the EU, Uber denied it was a transport company, arguing that it was a computer services business, and its operations should be subject to an EU directive governing e-commerce and prohibiting restrictions on the establishment of such organizations.

However, the ECJ said in its ruling that a service whose purpose 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 classified as "a service in the field of transport" under EU law.

The Uber case has caused concerns after a judge in Barcelona, Spain referred it to the ECJ in July, 2015 to determine what kind of company Uber is.

Since Uber started shaking up Europe's transport sector in 2011, regulators have faced a dilemma over how best to regulate the company, as a digital group or a transport provider.