Uber is a transport company and not a digital service, the European Court of Justice said on Wednesday, the BBC reported. This means, it will have to pay licensing fees, and give its drivers more benefits like traditional transport firms do.

The ruling comes after an outfit of drivers in Barcelona, the Asociación Profesional Elite Taxi, argued that as Uber carried passengers, it should be considered a transport firm, The Guardian reported.

Uber, however, argued that it was not a taxi firm, but a digital intermediary that used an app to connect passengers and drivers. As it considered drivers ‘self-employed’, it was not liable to give them benefits, holidays or sickness allowances, the BBC report said.

The court said a service whose purpose was “to connect, by means of a smartphone application and for remuneration, non-professional drivers using their own vehicle with persons who wish to make urban journeys” must be classified as “a service in the field of transport” in EU law.

Uber said the ruling will not affect its services in the European Union, as they “already operate under transportation law”. “However, millions of Europeans are still prevented from using apps like ours,” a spokesperson said, according to BBC.

“As our new CEO has said, it is appropriate to regulate services such as Uber and so we will continue the dialogue with cities across Europe.”