French Court Rules Against Uber

The French Constitutional Council has given a judgment against Uberpop.

Uber has received a bad news from France. The French Constitutional Council has rejected the San Francisco based company’s appeal against a legislation that sanctions its low cost service, Uberpop, lawfully pressurizing the cab company, as two apex officials have been trialed.

The European country’s Constitutional Council gave a ruling on Tuesday that the formulation of the new rule that makes the provision of a service, such as Uberpop, punishable with an imprisonment adheres with the constitution of France. Uber news today exclaimed that the court refused to accept the transporter’s claims that the law would efficiently outlaw taxi-hailing services that are involving any type of payments.

The Council ruled that such facilities could be easily differentiated from Uberpop, which employs unlicensed drivers. The petition shocked the company’s arguments at the same time, as the cab company eases regulatory difficulties on its operations in France. It is also problematic for the company’s two top officials in Paris, who would be trialed on September 30, for a number of cab-related charges, including breach of the law.

Uber technologies informed that the ruling is “disappointing,” but added that it would continue to provide its professional services in France and push for “new, common sense regulations that offer riders more affordable, reliable options and drivers new job opportunities.” The two charged persons are Thibaud Simphal, the transporter’s chief for France, and Pierre-Dimitri Gore-Coty, Uber’s head of Western Europe.

Uber news affirmed that the court’s ruling extends beyond the enterprise to include companies, such as the California-based Airbnb Inc. and French-based cab service, Drivy, which lets its clients to rent their neighbor’s vehicles. France’s tactic to possibly distinguish profitable services, such as Uberpop from cooperative ones like carpooling could play a role in determining the means through which other regimes manage the so-called sharing economy.

Governments are increasingly questioned regarding how to distinguish between normal operations and peer-to-peer economic activity, as well as how to govern the activity of businesses that are using the shared economy. It is probable that the latest development would play a significant role in demoralizing the Uber’s workforce and driving partners.

One could say that if the legal authority's judgment is not altered, it would set a precedent that might be followed by authorities across the world, which have previously acted against the app-based cab company's interests.

Industrial analysts have claimed that the French authority’s ruling would damage the company’s reputation and disappoint its customers in the region. Uber’s officials should contest the legal battle.