Uber has been dealt another blow in its bid to expand internationally.

Today, the European Court of Justice ruled that it's a transport service - not just an app.

It means that it's up to each EU member state to regulate the service, and governments can treat it like a taxi service.

The court also ruled the app is not covered by the regulations surrounding the freedom to provide services in the internal market.

The case ended up in the highest European court after a group of Spanish taxi drivers claimed the company was engaging in unfair competition practices.

Judges decided that the app forms "an integral part of an overall service".

In a press release explaining the decision, the court said: "The application provided by Uber is indispensable for both the drivers and the persons who wish to make an urban journey.

"[The Court] also points out that Uber exercises decisive influence over the conditions under which the drivers provide their service."

Uber is already heavily regulated here in Ireland, with Dublin users only able to book traditional taxis & limos instead of the company's better known private car and ride sharing services.