Members can ban taxi services like UberPop — Top EU court

CBS 6 Problem Solvers Investigations- Tuesdays on CBS 6 News at 11 p.m

CBS 6 Problem Solvers Investigations- Tuesdays on CBS 6 News at 11 p.m

The European Court of Justice said Tuesday it was OK for EU member States to ban illegal Uberpop services without giving the European Commission prior notification of the ban or any sanctions.

Uber's loss follows an earlier one previous year where the Luxembourg-based Court of Justice of the European Union (ECJ) classified the company as a transport service rather than a digital one, which stripped it of protections against undue national regulation that digital services enjoy under EU law.

The highest court in the European Union ruled Tuesday that France will be able to bring criminal charges against local managers of Uber for establishing an illegal taxi service within the country.

Uber, the biggest name in the growing gig economy, claims it is a mere service provider, connecting consumers with drivers in more than 600 cities.

Uber had fought criminal proceedings in several courts in France based on a 2014 French law before dropping in 2015 its UberPop service linking customers with non-professional drivers using their own vehicles. Uber argued that the criminal charges brought against two executive members of the company were invalid since France had no approval from the European Commission.

A court in the French city of Lille then asked the European Court of Justice whether French authorities should have notified the Commission before passing the law.

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"We're excited to begin our next chapter and to play a significant part in the transition of Uber to a multi-modal platform" and help "shift millions of trips from cars to bikes", said JUMP CEO Ryan Rzepecki. The company has also been forced to quit other countries such as Hungary and Denmark.

Under EU law, national legislation affecting digital services needs to be pre-notified to Brussels to ensure it is not distorting the single market.

Uber Technologies Inc on Tuesday unveiled a new app for its drivers that includes a real-time earnings tracker, the latest effort by the ride-hailing service to improve an often contentious relationship. Uber is appealing against the decision.

Uber has tossed the traditional taxi industry into agitation since arriving with its convenient ride-hailing model which allows users to summon a ride using a Smartphone app.

The association's Jakob Kucharczyk regretted to see "the Commission's effective oversight powers" being curtailed by the court.

Following EU court ruling on Tuesday, Uber which has been classified as a transport service now has no protection against undue national regulation applied to digital services they usually enjoy under the EU law.

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