Platform economy database
Database of initiatives and court cases in the EU
Eurofound’s platform economy database provides information on 386 initiatives and court cases that exist or have been implemented in relation to activities in the platform economy. The database was last updated in February 2024 and provides metadata for each entry, such as geographical scope, year, type of initiative, actors involved, sector and companies concerned. Initiatives include legal instruments such as legislative changes or court decisions, as well as voluntary interventions undertaken by different stakeholders to address issues around platform work.
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The database currently contains 386 entries and was last updated in February 2024.
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Germany
On 26 March 2021, the German Bundestag passed the controversial amendment to the Passenger Transport Act. The amendment for the first time provides an explicit legal framework that allows digital passenger transport service providers, such as Uber or Free Now, to operate in cities and rural areas. The amendment is intended to make rural areas more mobile while not to impede the competitiveness of the market for taxis or local public transport.
Under this amendment, the digital passenger transport services are subject to various restrictions. For example, digital service providers are not allowed to pick up spontaneous passengers on the road like traditional taxis, but only can accept orders that have been previously placed by phone or app. Meanwhile, the controversial obligation to return to the company headquarters for rental cars remains. Drivers working for ride hailing platforms are not allowed to stand on the side of the road and wait for customers, but must return to the company headquarters after every trip even with an empty car. The remained obligation disappoints digital transport service providers, but is welcomed by taxi associations and drivers, which had demonstrated against the abolition of the obligation several times across Germany.
The Federal Transport Minister and Taxi and Car Rental Association Germany (TMV) have welcomed the amendment as an innovation friendly legal framework that accommodates technology development. Instead, the Free Democratic Party (FDP) and platforms, such as Free Now and Uber, criticised the regulation, especially on the obligation to return to headquarters, complaining that the numerous new regulations and restrictions are in favour of the taxi section and can prevent innovation and fair competitions in this sector.
The platform economy is one of those moving targets, which, despite receiving increasing media and policy attention, has proven difficult to regulate. Given the heterogeneity of employment relationships, business models, types of platform work and cross-border issues, this is not surprising.
Technological change is accelerating as the capacity of electronic devices to digitally store, process and communicate information expands. Digitalisation is transforming the EU economy and labour markets: nearly one-third of EU workplaces are categorised as highly digitalised. What are the implications of the digital revolution for employment and work?
The rapid rise of the platform economy has led to a marked transformation of European labour markets, and existing regulatory frameworks and voluntary initiatives have yet to catch up. While platform work offers opportunities for workers and employers and potentially contributes to innovation, economic growth and competitiveness in the EU, it has been criticised from the beginning because of the poor employment and working conditions often experienced by workers.
While 2020 may come to be seen as the year platform work gathered pace and started to go mainstream – thanks in large part to COVID-19 containment measures sparking an increase in food and grocery delivery – 2021 could be the year that regulation of platform work is set in motion.
