The controversial but popular car pick-up service Uber has claimed a victory in Germany after a court threw out an injunction levelled against its operations in Europe's biggest economy.
The regional court in Frankfurt ruled that there was no need for an urgent temporary ban against the San Francisco-based firm, which allows passengers to summon cars using an app on their smartphones - similar to the Hailo app which operates in Ireland.
The decision means Uber can resume operating legally in Germany, but must await a final ruling on a complaint by the taxi federation as to whether it has the necessary permits to run a business.
The judges handed the company a reprieve but indicated it still had serious qualms about Uber's business model.
"The court still considers it to be unlawful that Uber brings trip requests to drivers who don't have permits under passenger transport law and thus incites drivers to break the law," it said in a statement.
But it said that a temporary injunction was a legal measure only to be issued when there was a "critical, urgent need", which it said had not been demonstrated.
Uber was defiant after the initial nationwide ban was levelled in late August even though it faced a fine of €250,000 every time it flouted it.
The company has been operating in five German cities, including Berlin and Frankfurt, since early 2013 and has trumpeted a major surge in business since the injunction.
However Uber, which charges prices that significantly undercut its rivals, has faced fierce opposition from local taxi companies, who have invoked court injunctions with some success.
Following the Frankfurt ruling last month, the head of the group's Western European operations, Pierre-Dimitri Gore-Coty told AFP the company was "examining ways of changing the service" to comply with German law.
"We fought the same battle one and a half years ago" in the United States, he said.
Uber is expanding rapidly and now operates in more than 100 US cities, and has a foothold in 42 countries, with a strong presence in the Asia-Pacific region.
Its move into Europe has encountered opposition from taxi companies, including protests from London cab drivers and legal injunctions in France and Spain.
