The Spanish Government's proposal to limit the number of licenses for tourist vehicles with drivers (VTC), which operate through platforms such as Uber or Cabify, has been rejected by the EU Commission on the grounds that it would constitute an unjustified restriction on the freedom to provide services and competition in the urban transport sector.
The Commission has sent a letter to the Ministry of Transport, Mobility and Urban Agenda, urging it to withdraw or modify the proposal, which is part of the draft law on sustainable mobility and financing of public transport.
The EU Commission argues that the Spanish proposal does not comply with the principles of proportionality and non-discrimination, and that it lacks justification for overriding reasons of general interest, such as environmental protection, road safety, or land use planning.
In addition, the they have warned that the proposal could violate the right of free movement of capital, by making it difficult for operators from other Member States to access the Spanish market, and that it could have negative consequences for consumers, by reducing the supply and quality of transport services, and for workers in the sector, by causing loss of jobs and income.
The Spanish Government say they are surprised and disappointed by this response, as they believe their proposal conforms to the European legal guidelines and aims to balance the different modes of urban transport, and promote the ecological transition to sustainable mobility.
The Ministry of Transport has announced that it will continue the dialogue with the EU Commission to defend its position and seek a satisfactory solution for all parties involved.
A law professor at the European University of Madrid says that "all regions will have to modify their legislation". He claims that the criticism of the European court is directed specifically towards the monopoly situation that exists in the taxi sector, where one VTC license is allowed for every 30 taxis in cities like Barcelona. Therefore, the court believes that guaranteeing the sustainability of taxi services cannot be a valid reason for maintaining this ratio.
On the other hand Cabify, argues that "legislation was being made in favour of a minority."
The European ruling questions the current ratio of VTC and taxis, arguing that it favours a monopoly in the taxi sector. This implies that changes in legislation will be required in all regions.
The taxi sector opposes the entry of more VTC and says they will take to the streets and protest against it, while it looks to establish a proportion of VTC licenses that is more appropriate to the needs of each city.
