You can’t set very strict rules on rental cars just to protect taxi drivers. This is the summary of the article of the European Court of Justice on 8 June criticizing the measures taken by the city of Barcelona both through luxury service companies and above all to restrict the use of chauffeur-driven cars. for example through international platforms such as Uber. The rules were assessed as “contrary to EU law”. The decision could go beyond Catalan borders and have important repercussions at the European level.
Additional Licenses and Restrictions
The city of Barcelona, led by the left-wing mayor at the time, Ada Colau, had passed one of the strictest laws regarding private rental cars in the EU. All services of this type must obtain an additional license before serving in the city. Most importantly, the number of licenses is limited to one-thirtieth of the licenses of the call taxi service. Against such a restrictive decision, Prestige and Limousine Sl, two luxury road transport companies operating in Barcelona, requested the annulment of these regulations before a national court, and the court later applied to the Court of Justice of the European Union. It is the subject of European law. Fifteen other companies have filed similar disputes, including international digital platforms like the giant Uber. Luxembourg judges announced that Barcelona “imposed restrictions on the exercise of freedom of establishment” by requesting special permits for the Catalan city in addition to national permits. In another passage, they emphasized that the measures regarding the number of driver’s licenses are multilateral in favor of traditional taxis.
Reasons for referees
Mayor Colau’s move has garnered international praise for trying to reduce car use through these measures, but the court dismissed claims that the measures would protect the environment or contribute to “sound management of transport, traffic and public space”. The Court underlined that other less stringent measures could be applied to achieve the dual objectives of protecting the environment and reducing traffic, such as imposing CO2 emission limits on vehicles circulating in the city and limiting the operation of private rental services. The former mayor was now criticized at home for not trusting free enterprise. After today’s final elections, the city is ruled by rival Xavier Trias, who is in talks to form a coalition government.
Beyond Barcelona
The Court of Justice held that ensuring the economic viability of taxi services was not an overriding reason of general interest to justify such a public policy. The decision therefore crosses Catalan borders and could affect many other countries, particularly the EU’s major metropolitan cities, where the use of digital platforms is more common to obtain private city, intercity transport services or reach airports. Uber and other similar platforms are seen as a threat to the survival of traditional taxi drivers, who often have to make large payments to purchase licenses. Even in Italy, taxi drivers staged protests to block the use of these services.
Uber’s move
The company’s move in recent years has been to incorporate traditional taxis into its practice. The aim is to gain time and ground in the more restrictive European markets that place restrictions on private rental cars. One of the prime examples of deals took place in Italy, where the platform signed a historic deal with IT Taxi, the largest reservation operator in Belpaese, in May 2022. Since then, more than twelve thousand taxi drivers in ninety cities have used the app to allow customers to book trips. The company said earlier this week that taxis now make up about 10% of all journeys by its customers in Europe, the Middle East and Africa. That’s double what it was a year ago. In a few days, EU labor ministers will meet in Luxembourg to agree on a joint position on the directive on platform workers, which aims to combat the “fake” self-employment phenomenon that many platforms have resorted to to avoid work obligations. .
Source: Today IT
Karen Clayton is a seasoned journalist and author at The Nation Update, with a focus on world news and current events. She has a background in international relations, which gives her a deep understanding of the political, economic and social factors that shape the global landscape. She writes about a wide range of topics, including conflicts, political upheavals, and economic trends, as well as humanitarian crisis and human rights issues.
