Uber was banned in a German court this week for running services using unlicensed drivers and now faces hefty fines for any violations of local transport laws made by the ride-sharing app company.
The ruling reinstates one of the most severe legal restrictions faced by Uber around the globe. It also overturns a ruling from September allowing the company's UberPop service to operate in the country, according to The New York Times.
The Silicon Valley-based company is attempting to revolutionize the local transportation business worldwide, from taxis to carpools to even food delivery. It has faced criticism however for its business style of acting first and seeking permission later.
Uber has also made headlines over how it pays drivers, ensures passengers safety and charges riders.
The latest case is just one of more than a dozen lawsuits filed across Europe recently against Uber.
UberPop links private drivers with passengers through their mobile devices. The service is the target of most of the lawsuits.
"What does is mean for the 255,000 taxi drivers and employees in 700 radio taxi control centres? It means legal certainty, 255,000 real jobs and taxpayers will remain in Germany," Schlenker said after the ruling, according to Reuters.
Uber has said it will continue to operate services in Germany using licensed limousine and taxi drivers. It is also working on a new service designed specifically to comply with German court's existing laws.
An Uber spokesman told Reuters that the company will most likely appeal Frankfurt court's decision, but will await the full ruling for now.
"We will not give up on the German market: our UberBLACK and uberTAXI services remain unaffected by today's judgment," Uber said, according to the BBC.
Uber has been hit by court injunctions in places like Belgium, France, Spain and the Netherlands.
French police raided Uber's Paris offices earlier this week for about six hours. Officers confiscated 1,200 cell phones used by Uber drivers and seized emails and documents from 45 employees as part of an investigation into UberPop.