Home / LEGISLATION / Laws / THE SPANISH COMPETITION AUTHORITY REQUIRES THE GOVERNMENT TO ELIMINATE ANTICOMPETITIVE RESTRICTIONS IN THE MARKET OF PASSENGER TRANSPORT BY ROAD

THE SPANISH COMPETITION AUTHORITY REQUIRES THE GOVERNMENT TO ELIMINATE ANTICOMPETITIVE RESTRICTIONS IN THE MARKET OF PASSENGER TRANSPORT BY ROAD

car_hire_bulgaria1The CNMC has required the Ministry of Public Works to eliminate anticompetitive restrictions on passenger transport in the segment of hiring a car with driver (VTC). These restrictions have been introduced by the Royal Decree 1057/2015, which incorporates obstacles to competition that have no economic justification.

The restrictions detected by the CNMC are the following:

1) qualitative limits: if the Public Administration considers that there is an imbalance between supply and demand or, in any case, when the ratio 1:30 (one VTC license for every 30 taxis) is exceeded, VTC authorizations can be refused.

(2) prohibitions of exercise: the RD requires VTC services to be previously contracted

(3) geographical compartmentalisation: VTC shall serve regularly in the territory of the Autonomous Community in which the authorization has been granted

(4) minimum number, representativeness and age of vehicles: unjustified technical requirements are established to operate as a minimum of 7 vehicles and a maximum age of 10 years.

This requirement is a prerequisite to its judicial appeal.

Source: CNMC

(Amaya Angulo)

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