A top EU commissioner has leapt to the defence of app-based companies such as Uber and AirBnb.
Jyrki Katainen said bans and restrictions such always be a last resort and proportionate to the public interest.
“Collaborative economic business models will raise anyway, and now the question is whether Europe is open for new innovations, open for new innovators. or are we sending people and businesses away from Europe, just for being too restrictive, and for protecting exciting business models,” he said during a press conference in Brussels.
Unions say their business models only thrive due to aggressive tax planning and undercutting the competition.
“Uber is a company using a very old-fashioned technology simply to provide a service in a situation of unfair competition and dumping. because that company is not paying proper taxes, is not paying proper social contributions, is not protecting their workers but also the clients, the consumers,” said Luca Visentini, European Trade Union Confederation, General Secretary.
Uber has faced restrictions in cities across Europe.
Meanwhile, The ride-hailing service announced Thursday that it had attracted a three billion euro investment from Saudi Arabia’s Public Investment Fund.