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Thursday, September 4, 2014

CNNGo.com

Posted: 03 Sep 2014 04:57 PM PDT

A court moves to end the ride for the U.S.-based online chauffeur and ride-sharing service in Germany

In the ongoing fight between chauffeur and ride-sharing app Uber and taxi drivers around the world, score one for the taxi drivers … for now.

A regional court in Frankfurt, Germany, this week issued a preliminary injunction forbidding the San Francisco-based Uber from operating in Germany.

The ruling was in response to a lawsuit filed by Germany's national union of taxi drivers.

The court said that Uber violated German law by working with a network of drivers that lack commercial licenses.

MORE ON CNN MONEY: Is it over for Uber in Germany?

"Violations will result in a fine against Uber of 250,000 euros ($328,108) per ride," according to Deutsche Welle, Germany's international broadcasting service. "Uber plans to appeal the decision and said it would continue offering its services until a final ruling has been made."

Uber vows to ride on

Gaining in popularity worldwide, Uber allows users to connect with "limousine services" and private drivers for ride-sharing via smartphone, often at prices that undercut going local taxi rates.

The company has already been forbidden from operating in individual cities in Germany, including Berlin, reported Deutsche Welle.

According to its website, Uber currently operates in 45 countries.

"Innovation and competition is good for everyone, riders, and drivers, everyone wins," said Uber spokesman Michel Doermer in a statement. "You cannot put the brakes on progress."

In addition to its legal issues in Germany, Uber has been under scrutiny for its business practices elsewhere.

In August, CNN Money reported that Uber employees had ordered and canceled more than 5,000 rides from rival Lyft since last October, in an effort to disrupt operations at that company.

Earlier this year, CNN Money reported that Uber staffers in New York called and withdrew more than 100 ride requests with another taxi app, Gett, in the span of three days.

After that incident, Uber said in a statement that it would "tone down their sales tactics."

More on Uber's German legal woes at CNN Money.

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uber

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legal travel