Sorry, Uber. Europe is still more focused on fighting successful US tech firms than creating its own

Hey, Europe is gonna Europe, what with its penchant for fighting successful tech firms rather than creating them. Just ask Uber. The EU’s highest court may have just bailed out local taxi companies by declaring the US-based ride-sharing platform to be a transportation company that must comply with “strict rules and licensing requirements” in the bloc, explains The Wall Street Journal.

Now, it doesn’t seem like there will be a massive or immediate effect on Uber’s business, just plenty more hassles as it deals with local transportation rules and requirements on a case-by-case basis. But the ruling does seem to quash any potential plans to expand the use of drivers without professional licenses, as in its much diminished UberPop service. If the court had ruled Uber more software company than transportation company, the firm might have been shielded from harsher regulation by EU law. Indeed, it was the now-banned UberPop service in Spain that was the basis of the lawsuit that eventually led to the European Court of Justice’s decision. From the WSJ:

The EU court case originates from legal action filed by Elite Taxi, a Barcelona-based association of independent taxi drivers, which is seeking penalties against Uber for operating its low-cost Uberpop service without the necessary taxi licenses and authorization from the city. Elite has argued Uber was competing unfairly by building a new model for transportation without the costs normally associated with it. A Spanish court banned UberPop there in December 2014.

Yes, innovative and disruptive business models might be seen by stodgy, cartel-loving incumbents as behaving “unfairly by building a new model for transportation without the costs normally associated with it.” I think that’s the point. Anyway, the ruling isn’t just about how Uber runs its business. As The New York Times points out:

While the ruling focused on these so-called peer-to-peer operations, it will most likely to be scrutinized by regulators looking more broadly at the gig economy, a growing part of the work force, in which people operate as freelancers or on short-term contracts as opposed to holding permanent jobs. Policymakers around the globe have been struggling with how to frame rules for a new style of employment, as rapidly shifting business models outpace regulations that for decades were formulated around traditional 9-to-5 jobs. Legislation in many countries has not kept up with the rising trend toward atypical work arrangements that companies use to cut costs.

So there’s the whole gig economy freak-out issue. Also expect the ruling to give inspiration to American activists who don’t much like these platform companies. They see Europe leading the way on regulating tech firms, and are seeking to import those approaches.

James Pethokoukis is a columnist and blogger at the American Enterprise Institute. Previously, he was the Washington columnist for Reuters Breakingviews, the opinion and commentary wing of Thomson Reuters.

Pethokoukis was the business editor and economics columnist for U.S. News & World Report from 1997 to 2008. He has written for many publications, including The New York Times, The Weekly Standard, Commentary, National Review, The Washington Examiner, USA Today and Investor’s Business Daily.