Uber suffered a major setback when the E.U.'s highest court ruled that it must obey the same rules as other taxi companies

Uber lost a major legal battle on Wednesday, when the European Union’s highest court declared that the ride hailing app must comply with tough rules governing traditional taxi associations, a significant setback for a company already grappling with a string of scandals.

The decision by the European Court of Justice, that Uber is a transportation company rather than an online platform that simply matches passengers with drivers, could thwart Uber’s expansion plans in the region, by making it pay costly licensing fees and employee benefits.

Uber will have to start treating drivers more like taxi chauffeurs, rather than independent workers with no link to the company aside from a smartphone app.

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