More detail here: http://fortune.com/2015/03/18/german-court-ban-uber/
Most of the drivers for uberPOP break german laws because they have no proper license and insurance to be commercial drivers.
The question was if Uber breaks the law ("Personenbeförderungsgesetz") by simply acting as a broker for those drivers - And the judge said yes, they do.
Basically, Uber is breaking the law when it comes to passenger transportation the same way Mega was breaking the law when it came to file sharing. It created an environment that promoted illegal activities.