Then the government that made the contractor vs employee laws needs to apply it. If a law is not enforced then it is not really a law. Companies are not obligated to do better than enforced laws, they are not charities or social organizations here to make the world a better place, they are here to make money for their shareholders.
I think the EU is doing the right thing. It sometimes takes a while for government laws or competition to catch up and balance out issues, but I don't for a second think that any company is going to play nice if it does not have to.
You are confusing legality with ethics. Ethically, Uber has a lot to be desired.
Uber is a US based company and will try to follow the capitalistic model as much as possible unless restricted by local laws. I would never make an assumption that a US based company's goal is to do good. Assume they are out to maximize profit no matter where they operate. If they seem to do good then there is a driver in their business model where this leads to more profits than doing bad.
In this case I'm not sure I am - if there are laws that companies need to follow, even if they are not always strictly or consistently enforced, I would consider it the legal obligation of a company to follow them.
I think the EU is doing the right thing. It sometimes takes a while for government laws or competition to catch up and balance out issues, but I don't for a second think that any company is going to play nice if it does not have to.