Top EU adviser says Uber should face increased regulation

Uber could face much stricter regulations in Europe after a top EU adviser concluded that the US company was a transportation firm and not a tech one.

The non-binding recommendation was issued by European Court of Justice's Advocate General Maciej Szpunar, opening the door for Uber to be judged on a different set of laws than its current classification.

It is the latest setback for the US firm, which has been hit with a number of allegations and court cases in recent months. Last week it was revealed the ride-hailing app would be the subject of a criminal investigation in the US over controversial software.

Now it may have to apply for a whole host of new licences if it is formally judged to be a transport company.

The non-binding recommendation was issued by European Court of Justice's Advocate General Maciej Szpunar

"The Uber electronic platform, whilst innovative, falls within the field of transport: Uber can thus be required to obtain the necessary licenses and authorizations under national law," Szpunar wrote in an opinion to the court.

"The drivers who work on the Uber platform do not pursue an autonomous activity that is independent of the platform. On the contrary, that activity exists solely because of the platform, without which it would have no sense.”

The case will face a final decision before the end of 2017, and while the court is not obliged to rule in the same vein as the Advocate General, it typically does so.

Uber said on Thursday that it would wait for the decision of the court before taking any action in relation to the case.