Competitors Warn That The New Vtc Regulations Are Disproportionate

2021-01-28   |   by CusiGO

Regulation of VTC (coordinated transport vehicle) licenses, e.g. using licenses from Uber and cabify, etc, They have been the government’s top killers for years, and on Thursday, the national market and Competition Commission (CNMC) re emphasized that, warning the government that the new rules restricting these licenses are disproportionate. In addition, he said in the report that the Supreme Court could overturn it: “this is similar to the Supreme Court’s annulment in its judgment of March 10, 2020, which does not meet the requirements of proportionality,” and the document has now been published, although the date is December 18.

As a result, competition once again challenges new regulations that require VTC to report corporate customer data to the registry before each trip. According to a measure drafted by the Ministry of transport, VTC can only provide previously signed services and has the obligation to communicate before the service, which is one of the main complaints of taxi drivers’ Association agreed by the government under the pressure of protest.

“It is suggested that the planned system of control measures should be changed to reduce the distortion of competition to the extent that the expected purpose can be achieved. This will bring better market results for consumers and users, “the CNMC report concluded. In addition, it noted that the regulation “places a heavy burden on the target operators and may hinder the use of such transport services”.

Among these “less burdensome” alternatives, the Supreme Court itself stated in its march judgment that it had an obligation to retain documents for subsequent control over the Administration (not to disclose them until services were provided to the autonomous Registry), As well as putting identification signs and signs on vehicles to facilitate control, which has been achieved in some communities.

Throughout the report, CNMC warned that the act was similar to the one that the high court overturned in March. It then declared invalid the measures proposed by the then Ministry of promotion in 2017 to ban the transmission of VTC licenses for two years, as well as the terms requiring the reporting of user data before each trip.

In this regard, the competition authority believes that the system of reporting corporate data proposed by the Ministry of transport is now similar to the system revoked by the Supreme Court, so the same approach can be adopted because they have the same defects in data protection.

Nevertheless, the regulator’s report received personal opinions from three of the eight directors. In these personal opinions, they argue that the ruling does not challenge the legality of this obligation, provided that the communication does not include the personal data of the service user.