A judge in Buenos Aires, Argentina, has ordered Uber to be blocked.
That judge, however, declined to jail local executives, despite a request from the local prosecutor who asked for a nationwide shutdown of the ride-sharing service.
Uber told CNNTech the app continues to operate normally and an appeals court will consider a nationwide ban.
The ride-hailing company was told to stop business in Buenos Aires in April. Local credit card and telecommunications companies were ordered to block Uber, but the ride-sharing service continued to operate in the city.
Related: London tries to save its black cabs from Uber
The Silicon Valley company faces criticism from labor groups, governments and drivers around the world. Critics say Uber should provide better pay and benefits to drivers, and that it undercuts local unionized transportation groups. Drivers in the U.S. are considered contractors.
In October, Uber drivers in the UK won a case classifying them as "workers." Uber said at the time it would appeal the ruling.
Taxi drivers in Argentina have been vocal opponents of the app-based car service, and a local taxi labor organization filed a lawsuit against the company when it launched in the country last year.
The local black and yellow taxis frequently feature anti-Uber slogans in their windows, and Uber passengers are sometimes asked to sit in the front for safety reasons to prevent harassment from taxi drivers.
- Diego Laje contributed reporting to this article.