Is it over for Uber in Germany?

LONDON (CNNMoney)

A regional court in Frankfurt issued a temporary injunction against the company last week, threatening Uber executives with a fine of 250,000 euros or six months in prison if they fail to comply.

German law prevents unlicensed drivers from charging more than the cost of making the journey. Uber suggests a fare for each trip booked over its app, and takes a cut, so the court ruled it was breaking the law.

Uber, which means "over" in German, was launched four years ago to connect smartphone users with luxury cab drivers. The company has grown rapidly since, branching out into cheaper taxis, ridesharing and delivery services.

Backed by heavyweight investors such as Jeff Bezos and Google (GOOG), Uber is now worth about $18 billion.

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Its expansion has run into fierce resistance from regulated taxi operators around the world.

Thousands of licensed taxi drivers in London, Paris, Berlin and Milan tried to bring traffic to a halt during a mass protest in June.

Uber said the protests simply resulted in lots of free publicity that led to a surge in downloads of its app.

Uber's ability to operate in Germany could be at risk.

Opponents have taken legal action too, resulting in bans in cities such as Brussels and Berlin.

But a bar across Europe's biggest economy would deal a serious blow to the company's plans. Germany is one of Uber's fastest growing markets in the region.

The company said Tuesday that it would appeal the suit filed by Taxi Deutschland, which operates its own car-booking app.

"You cannot put the brakes on progress," Uber said in a statement. "Uber will continue its operations and will offer Uberpop ridesharing services via its app throughout Germany. "