May 11, 2017

E.U. court advisor's recommendation threatens Uber's status

Automobile Italia / Flickr cc

A top advisor to Europe's highest court has recommended that it classify Uber as a transportation business instead of a technology company, according to media reports. This would mean the company would face stricter regulations and give individual countries more authority to set rules.

Why it matters: Uber faces several regulatory battles in Europe and a classification as a technology company, rather than a transportation company, would be an easier path for Uber in the long run.

What's next: The European Court of Justice is expected to rule later this year on the case, which stemmed from a lawsuit by a Spanish taxi driver association. While the advisor's recommendation isn't binding, the court often rules along the same lines.

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