In an effort to settle the legal disputes against the U.S. start-up company Uber, the European Commission has decided to launch a study in September as announced Friday in Reuters. Since opening in Paris in 2011, San Francisco-based Uber has run into several oppositions from taxi drivers complaining of unfairly bypassing local laws on safety and licensing.
The study will attempt to determine the legal instruments that Brussels might use to decide whether Uber is a transport service or just a digital service, an EU official said. In response to the different complaints, Uber also submitted complaint to the European Commission against German and Spanish court bans, including a new French law on taxis.
Uber's standpoint is that they are a digital platform that connects willing drivers with customers. Being considered as a transport service may impose a stricter rules on licensing, insurance and safety. An Uber spokeswoman said, "This investigation appears to indicate that the European Commission believes that the manner in which the taxi and private hire sectors are currently regulated in some member states is dysfunctional and is no longer fit for purpose, not to mention new barriers to entry for innovative, technology-based services such as ridesharing".
Regulatory regimes for taxi services in all members of the state will then be reviewed by the proposed study to assess if an EU-wide framework is needed. Taxis and vehicle-with-chauffer services are currently regulated at a national level.
The study will run in parallel with a case at the European Union top court that could result to legal battles across the continent. Around June next year, the European Court of Justice will likely rule before the completion of the study. Last May, the Commission already asked France to submit more information on its new taxi law which Uber claims to favour regular taxis at their own expense.
Innovative services such as Uber were something that the Commission welcomes. It is viewed as part of a so-called sharing economy where individuals are connected others' services such as travel or accommodation. The sharing economy has baffled policymakers, divided between promoting innovative services or ensuring that current industries can still compete on fair grounds.
