A top EU court has struck down Barcelona’s restrictions on ride-hailing licences in a ruling that is a victory for app-based taxi groups such as Uber and Cabify.
The Barcelona city government — one of the most hostile to ride-hailing in Europe — decreed in 2018 that for every 30 traditional taxi licences only one licence could be granted for a vehicle affiliated with the likes of Spain’s Cabify or Uber of the US.
But the European Court of Justice on Thursday said the licence ratio was “contrary to European law”. It noted that a total of 15 private vehicle hire companies contended that the regulation had the “sole purpose of protecting the interests of the taxi industry”.
The ECJ ruling could have a far-reaching effect across Europe as it said that ensuring the “economic viability” of taxi services “cannot constitute an overriding reason in the general interest” for capping private hire fleets. Italy and Greece have justified similar clampdowns on apps such as Uber as a means of protecting traditional cab companies.
An affiliate of Cabify brought the legal case against Barcelona, led by leftwing mayor Ada Colau, who won international praise for trying to reduce car use but was criticised at home for perceived poor management and a wariness of business.
Colau was defeated in mayoral elections at the end of May. Her pro-business rival Xavier Trias secured the biggest representation in the city council, but as no candidate won an absolute majority talks over forming a government continue.
The ECJ said Barcelona had “imposed restrictions on the exercise of freedom of establishment” by requiring Barcelona-specific permits in addition to national ones, then adding the licence ratio that was skewed in favour of traditional taxis.
The court rejected the contention that the measures would protect the environment or contribute to the “sound management of transport, traffic and public space”.
Across the world Uber and its rivals have long been seen as an existential threat to traditional taxi drivers, who often have to make large payments to buy their permits. In recent years, Uber has been forced to embrace traditional taxis, bringing them into its app in order to gain a foothold in European markets such as Barcelona that have brought in restrictions on private hire vehicles.
About 4,000 taxis are now available for hire through Uber’s app in Spain. The company said earlier this week that taxis today make up about 10 per cent of all its customers’ trips in Europe, the Middle East and Africa, twice as many as a year ago.
Two trade Spanish groups for ride-hailing companies, Feneval and Unauto VTC, welcomed the ECJ decision and said it “called into question many restrictions” on members introduced in recent years by regional governments in Catalonia, Valencia, Aragón and the Balearic Islands.
In Catalonia the regional government, which is based in Barcelona, has imposed rules that require passengers to wait at least 15 minutes between ordering a car and its arrival. They also stipulate a minimum vehicle size that is larger than a typical ride-hailing car.
Asked about the ECJ ruling, Janet Sanz, one of Barcelona’s deputy mayors, did not comment on the court’s rejection of the city’s licensing requirements. Cabify declined to comment.
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