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Europe – Uber defends its business model in Europe’s highest court

30 November 2016

Uber, the ridesharing app, defended its business model in Europe’s highest court, the European Court of Justice, yesterday, amid attacks over licensing and safety rules in a case that could leave the app facing stronger regulations, reports the Guardian.

The court is trying to decide if the company should be considered an app or a transport company. Taxi companies and some EU countries have criticised Uber since the company is not bound by strict local licensing and safety rules which apply to some of its competitors.

It the company was ruled as a transport company, it could subject the company to stricter rules on licensing, insurance and safety, with possible knock-on effects on other gig economy start-ups.

Uber has argued to the court that its service had made it easier for people to get around and that it cuts pollution.

Meanwhile, opponents of Uber’s model say that it should be treated as a transport company.

An ECJ adviser is expected to give a non-binding opinion in the coming months before the judges give their verdict.

For more on the global gig economy, click here.