Thursday, June 9, 2016

CNMC criticizes restrictions on companies like Uber in Spain – Reuters Spain


       

MADRID (Reuters) – The National Commission Markets and Competition (CNMC) on Thursday presented a critical report with current restrictions in Spain for rental vehicles driver (VTC), arguing that reduce competition and prevent a lowering of prices in this business.


       

The CNMC warned that these restrictions have an economic impact for society of at least 324 million euros a year.


       

In the market of urban housing or transport of passengers startups like Airbnb and Uber are challenging the traditional sectors of hospitality or taxi, but in many cities emerging companies are encountering serious constraints to develop its business model.


       

The current legislation in Spain for urban passenger transport, approved in 2015, provides for VTC obligation to offer their services only in the form of pre-contract, prohibiting remain parked or driving on the streets in search of customers.


       

The CNMV, which has filed an administrative appeal against these restrictions, said that only serve to entrench the monopoly of taxis in the urban passenger transport.


       

“All these restrictions reduce the general welfare and not justified on the principles of efficient economic regulation,” said CNMC.


       

The regulator also criticized “the existence of ferrous quantitative limits” in the sector of taxis, which have prevented normal development in recent years and have remained virtually constant the number of taxi licenses between 1998 (70.373) and 2015 ( 70509).


       

The CNMC and recently waged a battle against “artificial restrictions” in the regulation of tourist apartments in various regional, which won a partial victory to knock down a Madrid court this week a decree that prevented hiring a tourist housing for a period less than five days.


       

The European Commission has also taken action on this matter and announced last week that it would ensure that national laws do not violate EU treaties and impose excessively restrictive measures on the collaborative economy.


       

Meanwhile, the taxi sector indicates that Uber is a multinational “that has nothing collaborative” that “generates insecurity” and “ruining thousands of autonomous” in the words of according to the Spanish Federation of Taxi.


       

“… the representative organization of the Spanish taxi drivers regrets that (the European Commission) to citizens using these digital platforms rather than forcing them to follow the rules of competition is oriented solely towards ensuring accountability , fiscal and social of the member states, “the association said earlier this month.

       
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