We give a solution, via operator spaces, of an old problem in the Morita equivalence of C*-algebras. Namely, we show that C*-algebras are strongly Morita equivalent in the sense of Rieffel if and only if their categories of left operator modules are isomorphic via completely contractive functors. Moreover, any such functor is completely isometrically isomorphic to the Haagerup tensor product (=...