Top EU Court strikes down Barcelona’s strict taxi-on-demand rules

A European Court of Justice (ECJ) ruling published on Thursday (8 June) slammed Barcelona’s strict private hire vehicles rules as “contrary to EU law”, in a move that could have EU-wide repercussions.

Barcelona is known for having one of the EU’s strictest laws governing private hire vehicles (PHV).

All PHV services must obtain an additional licence before providing a service in the city. Moreover, the number of licences is capped at one-thirtieth of the ride-hailing taxi service licences.

Prestige and Limousine SL, a luxury ride-on-demand company operating in Barcelona, sought the annulment of these laws before a national court, on the grounds that the local rules only existed to hinder PHVs’ activity and protect the interest of the Barcelonan taxi industry, the ECJ noted.

Fifteen other companies, including international digital platforms, had filed similar disputes before national courts.

The matter was raised to the EU Court, which ruled that capping licences at one-thirtieth of the taxi industry licences not only breached the freedom of establishment but also did not help to attain Barcelona’s objectives of transport and traffic management and environmental protection.

Such a legal requirement, the ECJ noted, failed to be proportional to the city’s objectives.

The EU judges insisted that other, less strict measures could be implemented to achieve Barcelona’s double environmental protection and traffic reduction objectives, including applying CO2 emissions limits to vehicles circulating in Barcelona and restricting PHVs’ operation hours.

Barcelona’s ‘dual licencing’ system, however, was found to be a measure both proportional and necessary to improve traffic management and environmental protection.

The ruling could have an impact far beyond the Catalan capital and other EU cities, as the ECJ stated that ensuring the economic viability of taxi services – as opposed to PHVs – falls short of constituting an overriding reason in the general interest that would justify a public policy in this sense.

Barcelona Deputy Mayor for Transport Janet Sanz told Betevé, the city’s public TV station, that the ruling “confirms” there is “a need for restriction for environmental reasons or traffic congestion” and announced that a new round of municipal regulations would be drafted soon.

Jose Manuel Berzal, spokesman for trade union UNAUTO-VTC said: “The Spanish administration must adapt its regulations so that the number of licenses is determined based on the mobility needs of citizens and environmental protection, and not based on the interests of the most radical minority of the taxis.”

The ruling comes days before EU labour ministers are due to meet in Luxembourg to agree on a common position on the Platform Workers directive. The directive looks to combat ‘bogus’ self-employment in platform work most efficiently.

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[Edited by Luca Bertuzzi/Nathalie Weatherald]

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