EU Investigates Spain’s Laws Limiting Uber-like Platforms

Introduction

For many years, ride-hailing platforms, such as Uber or Bolt, have struggled to enter the Spanish market due to additional restrictions protecting local taxi companies. Although the European Court of Justice (ECJ) overturned the curbs in Barcelona, Spain continues to allow regional restrictions on the activity of alternative taxi services.   

The ECJ’s Ruling

It is well known that ride-hailing platforms are yet to fully establish in the Spanish market. Barcelona has been limiting companies like Uber of Bolt from gaining ground in the city for a long time. It has become known as one of the most hostile environments in Europe for the sub-sector. Until recently, for every 30 traditional taxi licenses, only one could be granted to a vehicle affiliated with a ride-hailing platform. On the 8th of June 2023, the ECJ ruled that this license ratio was not in the “sole purpose of protecting the interests of the taxi industry” and contrary to European law.

NEW restrictions

The ruling was seen as a huge win for ride-hailing companies in their efforts towards expanding their services across the country. However, the Spanish government retaliated by introducing fresh curbs on the relevant transport applications. It approved a decree which allows regional authorities to require private-hire car drivers to oblige by additional criteria to operate in specific areas. The criteria have to be justified under the grounds of environmental protection, road safety or the sustainability of ‘public interest services’ such as traditional taxis.

The EU’s Inquiry

The decision of the Spanish government further angered ride-hailing platforms. Relevant associations representing drivers want to challenge the decision in Brussels and have asked the European Commission to open legal proceedings against Spain.

In response, Brussels has begun a preliminary probe into whether the Spanish regulations are in breach of EU law. It appears that the EU is already in dialogue with the national government as to whether the approach is in line with EU law. This initial probe can also become the first stage of a more formal infringement proceeding against the Member State.

Conclusion

In conclusion, despite the ECJ’s ruling against restrictions on ride-hailing platforms in Barcelona, Spain has continued to enforce curbs on apps like Uber at a regional level. The clash has led to an EU inquiry, leaving the future of ride-hailing services in Spain uncertain. The ongoing struggle highlights the need for a balanced approach to regulating these platforms while fostering innovation and fair competition in the market.

By Scott Hickman