EU court deals major blow to Uber

The European Union’s highest court handed Uber a major defeat on Wednesday by declaring that the ride-hailing service must comply with the same tough rules as conventional taxi companies. Uber had argued that it should be exempt because it is really just a digital services provider, helping to connect riders with independent drivers through its ride-hailing smartphone app. The decision threatens to hamper Uber’s plans to expand in Europe by forcing it to spend a fortune on licensing fees and employee benefits. It also could signal broader changes in store for the gig economy, in which a growing number of people work as freelancers or under short-term contracts rather than as full-time employees with clear rights and benefits under established labor rules.

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