The smartphone based service will be prohibited from operating in the country until the legality of its business is determined by a court later this year. The court decided Uber did not comply with permit and insurance regulations in Germany. If Uber violates the ban, it could face fines up to 250,000 euros ($330,000) and their employees -- not drivers -- could face up to six months in jail.
This does not seem to phase Uber since they made it clear they will continue to operate and they plan to appeal the ruling.
"We believe innovation and competition is good for everyone, riders, and drivers, everyone wins. You cannot put the brakes on progress." said Uber in a statement.
German taxi associations welcomed the ruling as they believe Uber presents unfair competition as it is not held to the same regulations and standards as taxis.
"We welcome fair competition and a level playing field for all market participants," Hermann Waldner, chief executive of the competing European taxi app taxi.eu, said in a statement. "The taxi industry is now more in demand than ever before, and this judgment is a step in the right direction."
Uber has faced similar resistance in other countries. Taxi drivers in Madrid, London and Washington D.C. have staged protests against Uber's lack of regulation, bringing streets to a standstill and snarling up traffic for hours.