Uber blocked in Germany

A US-designed smartphone application that connects passengers with cars for hire was blocked from operation in Germany by court injunction Tuesday

BERLIN -- A court has barred ride sharing service Uber from operating in Germany, the latest shot in the San Francisco company's fight with taxi drivers worldwide.

Frankfurt state court spokesman Arne Hasse said Tuesday the decision that Uber can't offer its services without a specific permit under German transport laws applies nationwide.

The injunction applies pending a full hearing of a suit brought against Uber by Taxi Deutschland, a German cab association that also offers its own taxi-ordering app. The suit is being heard in Frankfurt because it is one of the several German cities in which Uber operates.

The court ruled the app can no longer function within the country without an official permit under the Passenger Transport Act.

The ruling is welcome news for Germany’s official taxi companies, which have long charged that the app side-steps regulations and operates without adherence to safety standards.

Uber promised to appeal. “We will fight the decision and defend our rights to the last,” the company said in a statement.

“We believe that competition is good for everyone,” it said. “That’s why Germany is one of our fastest growing markets.”

"It's never a good idea to limit people's choices," Uber said. "We believe that innovation and competition is good for everyone -- it profits both drivers and passengers."

The ruling comes after Berlin authorities last month barred Uber from operating in the capital because of safety concerns.

Taxi Deutschland's arguments were in line with those of established cab companies that claim Uber's app-based services, which offer limousines and pickups by private drivers, dodge rules that ordinary taxi firms have to abide by.

Taxi Deutschland said Uber allows drivers to skirt safety and insurance regulations that apply to conventional cabs, and for employers to avoid sector benefit and wage agreements and taxes.

"The state, society and workers all lose," the company said in a statement.

Violators of the injunction risk a fine of 250,000 euros (328,265 dollars) or imprisonment.

Uber is active in more that 200 cities worldwide with headquarters in San Francisco, California, and regional offices in Amsterdam.

The app had already been banned in Germany on a municipal basis, notably in Berlin, where authorities deemed it unsafe.

Passenger transportation should only occur under legislative oversight, said Dieter Schlenker, chairman of Germany’s main taxi cooperative.

“No passenger can check the driver, business and vehicle themselves,” Schlenker said.