A Spanish judge on Tuesday temporarily banned cell phone-based taxi service Uber from operating in Spain after a complaint brought by taxi drivers in the capital , Madrid . The judge issued the ban , the equivalent of a temporary injunction , on the grounds that Uber was deemed to be causing damage to the taxi industry , a court spokesman said . The hearing was in response to a complaint by the Madrid taxi association , which argued that Uber is unfair competition and also lacks the proper municipal licenses to operate a taxi service . The Madrid taxi association is expected now to file a formal lawsuit with the court , after gathering more documents and information , the court spokesman said . Legal arguments for Uber were not heard before the judge because the company is located outside of Spain , in the U.S. state of Delaware , and the taxi industry was seeking immediate relief , he said . The company is expected to have a chance to argue its points before the judge when the formal lawsuit is filed . The Madrid ruling comes on the same day that India 's federal government warned states against allowing unlicensed Web-based taxi services after an Uber driver was accused of raping a woman in New Delhi . Transport authorities in New Delhi on Monday announced a ban on Uber services in the Indian capital , saying their investigation revealed the company was violating permit rules .
A judge in Madrid temporarily halts Uber operations in Spain . Taxi drivers ' association argues that Uber is unfair competition and lacks proper licenses . It is expected to file a formal complaint before the court ; Uber can then make its case .