The European Union’s highest court says Uber is a taxi service.

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It means the company must comply with tough European transportation rules in up to 28 member states — which could make expansion in the region more complicated and costly. The landmark case could set a precedent for other Uber-esque companies operating in Europe; lawmakers across the globe have struggled to respond to changes in the nature of work represented by the “hazily regulated world of the gig economy.” Uber has called itself an “information society service" linking drivers and passengers rather than a transportation business.