Taxi app firm Uber has been banned in Germany after an injunction was issued by a court in Frankfurt.
The injunction was made after the German taxi lobby challenged the company for non-compliance with existing transport regulations.
The San-Francisco based company faces fines up to €250,000 if it violates the injunction.
The judgment said that Uber was not operating a legitimate service as the remuneration is not set in advance but is based on a fare estimate provided at the start of the journey. It also stated Uber’s drivers do not have the correct permits and not properly insured.
“The Passenger Transport Act regulates the protection of drivers and consumers. That can't easily be overturned no matter how neoliberal the company,” German taxi lobby chairman said in a statement.
“Uber operates with billions in cash from Goldman Sachs and Google, wraps itself in a start-up-look and sells itself as a new economy saviour.”
Despite the ban Uber has vowed to keep the app online: "You cannot put the brakes on progress,” the company said in a statement.
"Germany is one of the fastest growing markets for Uber in Europe. Uber will continue its operations and will offer Uberpop ridesharing services via its app throughout Germany."
In August, the city of Berlin banned the use of Uber on “safety grounds” because city officials believe that the technology firm does not do enough to protect passengers from unlicensed drivers.
The app is being challenged by South Korean’s capital city Seoul. There have also been mass protests this year against Uber from taxi drivers in many European cities including London and Rome.