Uber, a transport company not a digital service – EU court declares

Uber, a transport service company was launched 6 years ago and it currently operates in over 60 European cities and about 600 cities globally. Recently, the company argued that it is a digital¬†service provider and just like other¬†e-commerce businesses, it should pay lighter taxes. However, today, the¬†European Union‚Äôs top court ruled that Uber¬†‚Äúis covered by services in the field of transport‚ÄĚ and it will be handled just like other taxi operators.

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This case started when complaint emanated from¬†taxi unions in Spain claiming that¬†UberPOP service has a huge advantage over them due to the different conditions of service. The fact that¬†non-app citizens can‚Äôt use the service gives Uber an¬†unfair advantage.¬†According to the ECJ, Uber ‚Äúexercises decisive influence over the conditions in which drivers provide their service,‚ÄĚ. Although the courts ruling is binding, the decision will not take effect immediately.

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