(MENAFN- AFP) A German court on Wednesday ruled against US taxi app company Uber, issuing a nationwide ban on its ride-sharing service uberPOP.
The firm, which operates in 250 cities worldwide, has drawn criticism in many countries from regulators and established taxi operators.
A Frankfurt regional court found in favour of industry group Taxi Deutschland and issued an injunction that bans the uberPOP service, with each breach to face a 250,000 euro ($265,000) fine.
Judge Joachim Nickel confirmed an earlier ruling last year that Uber was in breach of a German law that says only certified professional drivers may transport passengers for money.
Taxi Deutschland head Dieter Schlenker welcomed the ruling, which follows bans in several cities including Berlin, and said that "Uber's business model is based on breaking the law".
He urged the company not to appeal the ruling and to "accept that consumer protection and passenger safety count in Germany".
The uberPOP application puts non-professional drivers with their own cars in touch with passengers via their mobile phones or a website, for rides at budget rates.
Uber's founder Travis Kalanick has said the system will create 50,000 new jobs in Europe this year, and help take 400,000 cars off the road by encouraging drivers to use shared rides instead.
Critics have accused Uber of flouting competition rules and of not carrying out sufficient safety checks on drivers and their vehicles.
Uber has also been hit with court injunctions in Belgium, France, the Netherlands and Spain, and has faced protests from taxi firms in major cities, including London and Brussels.
French police on Tuesday raided Uber's Paris offices as part of an investigation into its service, the company told AFP.
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