Class Economy Premium: CNMC uses the rules protecting the taxi industry against Uber and the like

Thursday, April 7, 2016

CNMC uses the rules protecting the taxi industry against Uber and the like – Hipertextual

The CNMC lodged an administrative appeal against certain restrictions on competition laid down in the rules of car hire with driver as they are “unjustified and harm consumers , businesses, self-employed and public sector itself. “

the CNMC uses the rules protecting the taxi sector to Uber and similar

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Now barruntando time came and it was a matter of days the ad cash do. The first sign came in January when the National Commission Markets and Competition (CNMC) sent a request for cancellation of several of the items incorporated in Royal Decree 1057/2015, approved in December last year by the Government, related to the regulation of business rental vehicles with driver.

the CNMC has always been committed to fully release the transport sector in an attempt to get openness in legislation recently approved, and that was pending negotiations for nearly eight years, also they made a request to the Ministry of Public Works asking the same request. Given the bad relations with government and CNMC, and have not bothered to hide, these requirements have been ignored. In fact, a few days

ago, representatives of the executive and of the taxi industry met to discuss the situation and clarify positions, in fact, remain as usual.

After this situation and consequently the CNMC has brought the famous administrative appeal aimed at improving both standards and remove the unjustified competition harm consumers restrictions, businesses, self-employed and public sector itself . Overdue probably by the own internal struggles for passing the Commission as to the different opinions that govern the management of the institution.

The CNMC challenges these acts of public administration in judging which are “contrary to the principles of promoting effective competition and efficient economic regulation.” The commission there are several obstacles that are not justified

The quantitative licenses car hire with driver now subject to the law 1/30 limits. That is, for every 30 taxi licenses are issued a VTC, which makes now there are very less than 3,000 of these permits in Spain . The obligation to hire the service previously through applications and the prohibition to compete directly on public roads leaving stops enabled to use taxis.
Geographical restrictions fragmenting the domestic market.
The minimum number of vehicles to start trading, limited to seven minimum, and several unnecessary and discriminatory restrictions for new entrants related to representativeness and age of vehicles.

All these walls to competition, according to the CNMC, which has the most liberal vision of the transport sector, “no social justification, hamper the effective competition in urban passenger transport throughout the national territory, adversely affect the innovation and for all, reduce overall welfare.