A European Union decision to treat Uber Technologies Inc like a taxi company spotlights a trans-Atlantic divide over how governments cope with disruptive technologies and could embolden US cities to restrict the ride-sharing service.
The EU Court of Justice on Wednesday ruled against Uber, which had argued it’s a technology platform connecting passengers with independent drivers, not a transportation company subject to the same rules as taxi services. In the US, states have passed broad-based laws governing ride-sharing businesses, brushing aside traditional taxi-industry regulations for Uber and Lyft Inc.