The court banned Uber in 2015 from connecting drivers who use their own cars with drivers. Uber`s current service, which allows customers to suspend rides in rental cars, is also illegal because it violates competition rules, the court said. “[The court] clarified that Uber`s system is illegal in Germany,” said its boss Michael Oppermann. The decision on Uber`s shipping process follows a lawsuit filed by a German taxi association. The taxi booking app Uber is facing new controversies since it has just been banned throughout Germany. The company reportedly said it would continue to operate despite everything — although it could potentially face a fine of up to €250,000 (€198,000) per trip — because it considers the ban unenforceable. The ruling was handed down Tuesday by a court in Frankfurt, where it concluded that the company did not have the necessary permits to operate legally in the country. Until such conditions are given in Germany, it will probably take some time, even if Transport Minister Scheuer continues to exert pressure. Even the federal government`s grand coalition agreement between the CDU and the SPD states: “New platform-based digital mobility services need a secure legal basis for their approval.” The agreement also stipulates that the law on passenger transport must be modernised.
Another blow to Uber in Europe: A Frankfurt district court banned the company from sending ride-hailing requests to car rental companies through its app — the court finding several antitrust violations. Uber argues that a reform of German traffic law is needed to take into account digital business models and app-based shipping. Meanwhile, his company clearly remains vulnerable to the legal challenges of regulating ORVs. Germany`s highest court ruled in 2018 that a former Uber ride-hailing service was illegal. A person familiar with the company said Uber will now change the way it operates in Europe`s largest economy, adding that it is also considering taking legal action against the decision. In Germany, Uber`s ride-hailing business works exclusively with professional and licensed private car rental (PHV) companies whose drivers and cars have the necessary licenses and permits to transport passengers. Thus, the court`s ban essentially bans Uber`s current model in the country — unless it is able to make changes to comply with regulations. The president of the Federal Association of Taxis and Car Rental (BZP) recently sharply criticized Scheuer`s plans. “The ministry`s proposals are all one-sided in favor of Uber & Co. – and to the detriment of taxis.
This threatens the existence of the taxi industry. » Read more: Uber: Nearly 6,000 reports of sexual assault in the US over 2 years According to Reuters, the plaintiff in the case, Taxi Deutschland, said it would seek immediate provisional enforcement – with the threat of fines of €250 per trip or up to €250,000 per trip for repeated violations if Uber does not make the necessary changes. The court banned the company from offering rides through car rental companies with immediate effect, but the decision can still be appealed. Uber said its German customers could continue to use the app in response to the decision. Uber`s P2P ride-hailing offering has been effectively banned across Europe since a 2017 ruling by the region`s Supreme Court classifying it as a transport company rather than just a technology platform – meaning its operations are subject to PHV regulations in all EU member states. Compliance costs were therefore passed on to their model in the region. Unlike other countries, Uber in Germany is not allowed to offer non-professional drivers rides in their own car, according to a previous court ruling. It only operates in a handful of major cities under an alternative business model that uses licensed car rental and taxi companies. Uber advertised rides for customers in a way that led them to consider it a transportation service provider, the court said, adding that the company also selects certain drivers and sets prices. On August 13, 2014, the city of Berlin banned Uber Black and similar apps. (Id.
to 3.) In addition, Uber was sued by the plaintiff. The courts ruled in favour of the plaintiff. (Id., p. 8.) The Federal Court of Justice stayed the proceedings and referred the questions to the Court of Justice of the European Communities (ECJ) for a preliminary ruling. However, after the CJEU ruled on a similar case concerning Uber, which had been submitted by a Spanish court, the Federal Court of Justice withdrew its request for a preliminary ruling. (Id., pp. 10–12; for more information on the Uber case referred by the Spanish court, see Catharina Schmidt, Uber at the ECJ – The Legal Saga in Europe Continues, IN CUSTODIA LEGIS (8. March 2018).) The Frankfurt court`s decision also follows a decision by London`s transport regulator not to renew Uber`s license to operate in the British capital. The Federal Association of Taxis and Rental Cars welcomed the verdict on Thursday. In addition, the Federal Court of Justice ruled that the ban on the Uber Black app was compatible with the EU`s freedom to provide services codified in Article 56 TFEU and the EU Services Directive in the Internal Market. (BGH, with 45; Directive 2006/123/EC of the European Parliament and of the Council on services in the internal market, 12 December 2006, 2006 OJ No. (L 376) 36, EUR-Lex site.) Under Article 58 TFEU, the freedom to provide services does not apply to transport services.
The Federal Court of Justice confirmed that, according to its case law and that of the CJEU, the services provided by Uber were transport services. (BGH, para. 45.) The intermediary service offered by Uber is “an integral part of an overall service the principal element of which is a transportation service.” Uber sets the terms of service – for example, by setting a maximum price – and riders would not be able to use drivers` services without the intermediary service. (Id., pp. 46–50.) (11. February 2019) In a decision published on 29 January 2019, the Federal Court of Justice (BGH) ruled that booking rental cars with professional drivers via the Uber Black app, the luxury chauffeur service, is prohibited. (BGH, 13 December 2018, file No I ZR 3/16, ECLI:DE:BGH:2018:131218UIZR3.16.0, BGH website.) The court found that the Uber Black app violated Article 49 of Germany`s Passenger Transport Act, according to which chauffeur services can only accept orders received at the driver`s company`s headquarters. (Personenbeförderungsgesetz [PBefG], 8.
August 1990, BUNDESGESETZBLATT I at 1690, Deutsche Gesetze Online-Website.) The Court ruled that the prohibition was compatible with the freedom to provide services of the European Union (EU) codified in Article 56 of the Treaty on the Functioning of the European Union (TFEU). (BGH to 1; Consolidated version of the Treaty on the Functioning of the European Union [TFEU], 2016 OJ No. (C 202) 1, EUR-Lex website.) It seems that travelers who are used to calling an Uber on landing will still have to wait. And they must have two things in their hands when traveling to Germany: patience and a plane ticket to Berlin, Düsseldorf, Frankfurt or Munich.