In the Netherlands we mostly have a mix of semi free market and government regulation.
The government sets the ground rules and free competition is possible within that platform.
Taxi drivers have to obey by many strict laws. Uber "taxis" do not.
The current position of the government is that Uber poses unfair competition as Uber users do not comply with the regulation required for Taxi drivers while essentialy offering the same services.
Technically, if Uber can make their drivers comply to the Taxi driver rules the app would be no problem.
Much of the advantage would be lost in the process though..
And it's a bit of a killer for innovation and keeps prices high.
Personally i like the sharing culture Uber promotes.
But i don't think the attitude towards Uber taxis will change anytime soon.