The National Commission for Markets and Competition (CNMC) has filed an administrative appeal against several articles of the decree regulating taxi and private rental services in the Balearic Islands, alleging that they contain “disproportionate” measures that restrict competition.
Before taking the case to court, the CNMC stated in a press release that it had asked the regional government to modify or remove the articles considered “problematic” in order to avoid them being challenged. The regional government, however, rejected the proposals presented, which has led to the initiation of legal proceedings against a decree that was approved by the regional government at the end of last February.
The CNMC has stated that it is not challenging the decree as a whole, but rather certain requirements related to the access and operation of taxi and ride-hailing services, which it considers “unnecessary, disproportionate, and discriminatory.” It has warned that these aspects of the regulation could reduce competition and, consequently, harm consumers and users of these services.
Among the challenged provisions is the one that establishes the maximum age of vehicles for the granting of new licenses. The CNMC has argued that requiring vehicles to be less than two years old from the date of registration restricts access to the service without guaranteeing a better service. Also included is the provision that establishes the minimum length for taxis and private rental vehicles, as it allows those that use alternative energy sources to be shorter than other, more polluting vehicles.
However, the state agency has emphasized that a minimum size of 4.35 meters is established, which, in its opinion, ‘unjustifiably’ reduces the range of zero-emission vehicles available without improving service quality or user comfort. Furthermore, the CNMC has argued that allowing smaller vehicles would improve service efficiency and reduce the use of public space.
He also hasn’t expressed satisfaction with the restriction on the number of operators, which prevents booking per-seat services with individual payment. In his view, ride-sharing would expand the available supply, lower prices, and reduce traffic congestion and pollution.
The independent body has also challenged the provisions requiring passenger pickup services to publish their rates on their websites, arguing that this places an ‘unnecessary’ burden on service providers. The price is available through mobile apps before booking the trip and, he noted, the Supreme Court (SC) recently overturned a similar regulation in the Region of Murcia for violating freedom of enterprise.
The CNMC has finally taken legal action to prohibit the practice of reserving passenger transport services by seat, with individual payment, and to prevent limits from being set on price increases for these services during periods of high demand, as it believes this could reduce the availability of vehicles “due to a lack of incentives” and increase wait times for users.