Back to top

On the 8th of May, 2019, in the case “Demanda por incumplimiento del principio fundamental 449 Distrito Federal”, (File No. ADPF 449/DF), the unconstitutionality of the Municipal Law of Strength was declared. This was on the grounds that: (i) since Uber and taxi services are fundamentally different, they cannot be analysed under the same regulatory framework; (ii) when the law restricts markets by creating entry barriers to new competitors, it indirectly favours market dominance, eliminates competition and arbitrarily increases profits; (iii) restrictive regulations on individual transportation activity are a way of transferring resources from consumers to taxi licence-holders, violating the constitutional principles of equality and free initiative; (iv) it is the Judiciary Power’s role to invalidate regulatory acts that establish disproportionate restrictions on free initiative and professional freedom.

en_GBEnglish