Wednesday, September 3, 2014
Liliana Eskenazi, Allen & Overy discusses The French Taxi Case: Where Competition Meets—and Overrides—Regulation.
ABSTRACT: A new market for passenger cars with driver (VTC) booked in advance online or through smartphone apps has recently emerged in France, in parallel to the regulated taxi business. The resulting market clash between VTCs and traditional taxis, which are partially protected by a legal monopoly in relation to ‘hail and ride’ services, triggered new regulation aiming to restrict VTC activity. The French Competition Authority, in a recent opinion, and the supreme administrative court (Conseil d'Etat) in an interim order both ruled that such regulatory restrictions distort competition on the unprotected segment of the market and hamper the freedom to conduct business.