European ruling may derail Portugal's new legislation for Uber

A European categorisation of Uber may conflict with Portugal’s plans to treat the service provider differently to taxi drivers.

A non-binding legal opinion - but which may affect the decision of the highest judicial body in the European Union - considers that Uber should be regulated as a transport company and not, as the company claims, to be regarded purely as an electronic reservation platform for transport.

The opinion comes from an Advocate General of the Court of Justice of the European Union (CJEU), Maciej Szpunar.

If this view is adopted by the Court of Justice, which has been looking at Uber's activities since November last year, the US company may see a tightening of regulations covering its European operations.

The service of connecting passengers and drivers through a mobile phone application is a secondary component of the business and Uber therefore should be considered a transport company, according to the Advocate General quoted by the Financial Times today.

The US company argues that it provides a service within the "information society" which according to European laws must not be unnecessarily regulated by local authorities.

However, if the Court of Justice says Uber is simply another transport company, then it will be regulated by current regulations - something Uber desperately is trying to avoid.

Uber commented that, "Being considered as a transport company will not change the way we already are regulated in most countries of the European Union. However, it will undermine the necessary reforms to outdated laws that prevent millions of Europeans from accessing reliable transport at the push of a button."

Uber in Portugal added that, "We are aware of today's opinion and look forward to a final decision to be taken this year. This recommendation confirms the need to reform outdated laws in the transport sector, so we continue to wait for the approval of a modern and transparent regulatory framework for Portuguese cities."

Portugal’s taxi drivers have challenged the government's proposal to regulate electronic platforms such as Uber and Cabify. The taxi drivers’ union, Antral, wants the number of Uber vehicles to be limited, among other demands.

The Environment Minister, João Pedro Matos Fernandes, says the Government's new bill "defines rules for the electronic platforms and creates rules for the operators, obliging them to be companies and thus ending the use of occasional drivers."

In addition to the protection of workers, the new law encompasses consumer protection and taxation.

With the Advocate General of the Court of Justice of the European Union stating that Uber is a normal transport business, Portugal’s new laws drafted specifically for Uber’s business model may be unnecessary, or maybe can be extended to cover taxi drivers who say they are over-regulated and constrained by a mass of red tape.

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