Estonia, EU – Baltic States, Legislation, Technology, Transport
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Saturday, 20.04.2024, 13:56
Taxify: decision of European court undermines competition
"We expected from the ECJ defining the ridesharing platforms as
digital service providers, which would have created better preconditions for
innovation and open competition. Where strict regulations like this protect the
interests of a very small group of taxi drivers, they significantly restrict
free competition and options for customers," Villig said in a press
release.
"In the opinion of Taxify,
the field of transportation requires regulation that is minimal but done at a
reasonable level - a background check for each driver and insurance for cars.
That would ensure extensive open competition on the market and freedom of
choice for customers," he said.
"At present there's still a number of closed markets in Europe such as
Germany, Spain, Italy, Hungary and Scandinavia, where the associations of taxi
drivers have managed to ban ridesharing on the local market as a result of
strong lobbying. In countries like that the taxi service continues to be a
luxury service which is seldom used by locals," the Taxify co-founder said.
Uber is a transport
services company, the European court of justice (ECJ) said in a ruling out on
Wednesday, requiring it to comply with the relevant transport regulations
governing local taxi services. The decision in Luxembourg, after a challenge
brought by taxi drivers in Barcelona, will apply across the whole of the EU.
"The service provided by Uber
connecting individuals with non-professional drivers is covered by services in
the field of transport," the EU court ruled. The EU's 28 member states
"can therefore regulate the conditions for providing that service."
Uber had denied it was
a transport company, arguing instead it is a digital service business with
operations that should be subject to an EU directive governing e-commerce and
prohibiting restrictions on the establishment of such organizations.