By Pieter van Cleynenbreugel
Online platforms have become major economic players over the past decade. It is not surprising, therefore, that their business practices have captured the European Union’s attention. This attention resulted in a 2018 proposal for a Regulation on transparency and equity in relationships with online platforms, a political agreement on which has been reached between the Commission, Council and European Parliament on 13 February 2019 (see for the press release, http://europa.eu/rapid/press-release_IP-19-1168_en.htm). It is very likely that this Regulation will be adopted before the European Parliament elections of this year. Even though it may seem premature to comment on the Regulation’s content in an in-depth way (the final negotiations and fine-tuning are still in progress at this time), this contribution would like to flag an important gap that has seemingly withstood scrutiny so far. That gap concerns the fact that the proposed Regulation apparently – seemingly unintentionally – would not apply to ‘underlying service-attached intermediation activities’ offered by platforms such as Uber and Deliveroo. This is most surprising, as the Commission clearly wants them to fall within the scope of that Regulation (according to its press release mentioned above, the new instrument is to apply to ‘the entire online platform economy’ if and when adopted). This contribution uncovers that gap and proposes a way to close it. Continue reading
By Pieter van Cleynenbreugel
Long gone are the days when a taxi was the only means of private transport in return for payment to be obtained in our cities. The ridesharing smartphone application provider Uber has shaken up the way in which people book, offer and conceive private rides. One of the most far-reaching and therefore controversial Uber applications is UberPOP. That application enables non-professional individuals (in contrast with UberX, which relies on professional – and often licensed – drivers) to act as remunerated drivers, transporting other private individuals from point A to point B. As UberPOP drivers generally are non-professional drivers making ancillary revenue out of their ridesharing activities, they do not have a taxi or other transport license and are not employed by Uber. That fact has encouraged regulators strictly to limit or even to prohibit UberPOP activities for safety and consumer protection reasons.
A prohibition thus issued in Barcelona gave rise to a first ruling by the Court of Justice on the matter in the Elite Taxi judgment (C-434/15) rendered last December 2017. In some Member States, such as France, the offering of unlicensed transportation activities has even been subject to criminal law sanctions, which led to the Uber France judgment (C-320/16) rendered on 10 April 2018. In both judgments, Uber argued that the national regulations in place were incompatible with EU law and more particularly with the provisions of the e-commerce (Directive 2000/31) and services (Directive 2006/123) Directives. The Court flatly ruled out that possibility, considering Uber to offer services in the field of transport not actually governed by EU secondary legislation. Continue reading
By Andrew Murray
Case C-434/15 Asociación Profesional Elite Taxi v. Uber Systems Spain SL, Opinion of the Advocate General, 11 May 2017
Uber is among the best known sharing economy services offering what Uber would call a platform that allows the introduction of people offering ride shares to those seeking lifts to their destination. Uber have been clear and single minded in their legal status in a number of cases around the globe: they’re not a taxi firm they are a technology company. This position has been challenged by AG Szpunar in his recent opinion in the case of Asociación Profesional Elite Taxi v. Uber Systems Spain SL. His position that “it is undoubtedly the supply of transport which is the main supply and which gives the service economic meaning” is being seen as a major setback for Uber. Continue reading