​An Ontario judge has sided with the ride-hailing service Uber in its legal dispute with the City of Toronto.

The city sought a permanent injunction on the company's operations, arguing Uber is a taxi company and must abide by the city's regulations.

But Judge Sean Dunphy dismissed the application, saying there is "no evidence" the company is operating as a taxi broker.

In his decision, he says questions surrounding the regulation of evolving communications technology should be resolved politically.

Uber has always argued it is a communications company that connects passengers and drivers, and thus isn't subject to the city's bylaws.

The company says it is pleased by the ruling and hopes it paves the way for regulations around the service.

The iTaxi Workers Association said via Twitter it is "deeply disappointed" with the ruling and called on city council to protect the city's cab drivers. 

The ruling "will continue to hurt the front-line drivers [and] the taxi industry," the organization said.