Weeks after London municipal authorities decided not to renew Uber Technologies Inc.’s license, a German regional court has issued a ruling that effectively bans the company from Europe’s largest economy.

Uber operates differently in the European Union than in the United States. After a 2017 court decision, the company doesn’t maintain a network of drivers but instead plays the narrower role of dispatcher, sending ride-hailing requests made inside its app to licensed private-hire car firms.

The ruling issued today in Germany has found that the company lacks the necessary permit to provide this service. The court justified its position by noting that “from a passenger’s point of view, Uber provides the service itself and is therefore an entrepreneur,” a status that comes with the requirement of getting a special license. Uber was furthermore found to be in breach of certain other German competition rules. 

One of the violations stems from the fact that the company allowed drivers to accept customer requests without those requests first going through their employer. Additionally, drivers could drop off a passenger and then go pick up another user in breach of a German law stipulating that private-hire vehicles must return to their company’s headquarters before every trip.

The ban is reportedly enforceable immediately. Taxi Deutschland, a German taxi association whose lawsuit against Uber prompted the ruling, said that it will ask the court to levy fines of €250 per ride and up to €250,000 per ride for repeat violations.

Reuters cited a source close to Uber as saying the company will change its operating model in Germany to comply with the ruling. An appeal is reportedly on the table as well. 

Uber’s official statement on the matter was more reserved. “We will assess the court’s ruling and determine next steps to ensure our services in Germany continue,” the company said “Working with licensed PHV [private hire vehicle] operators and their professional drivers, we are committed to being a true partner to German cities for the long term.”

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