ECJ rules that Uber is a transport company, not a digital service - and so governments may regulate accordingly.
In a new blow to the ride service, Uber will continue to be regulated by individual Member States across Europe according to a press release on the ruling.
It's been decided the mobile app Uber is a transport company and not a digital service.
The ruling has been made by the European Union's top court and could affect its services across the continent.
Uber was created in 2009 and today operates in more than six hundred cities worldwide.
It allows members of the public to request lifts using their mobile phones from Uber drivers who are in the area.
The decision by the EU's top court follows a 24 hour strike by Barcelona taxi drivers last month.
It was the latest incident in a long running row over Uber's lack of proper licensing and it's threat to taxi drivers livelihoods.
But this new ruling means Uber must be regulated differently from now on