Municipality cannot restrict competition in motorcycle taxi

One of the principles arising from free enterprise is free competition (article 170, item IV, of the Constitution), consisting of protecting agents operating in the market from the institution of free competition in the various fields of activity, providing better efficiency, diversity, innovation and progress to the economic order, and reflecting socially desirable results, such as better quality of goods and services, fair prices and expansion in the range of consumer choice.





Flickr/Antoine49

Flickr/Antoine49 Municipality Portugal Mobile Number List cannot restrict competition in motorcycle taxi services, says TJ-SP

The understanding was adopted by the Special Body of the Court of Justice of São Paulo when annulling some provisions of a municipal law in Colina, authored by parliament, which changed the regulation of the motorcycle taxi service in the city.



The direct action of unconstitutionality was proposed by the mayor, who alleged a defect in the initiative, since the rule deals with a topic related to municipal administration, reserved for the Executive's initiative, giving rise to a violation of the principle of separation of powers.



For the rapporteur, judge Francisco Casconi, there is a lack of initiative in three provisions, which involve matters within the exclusive competence of the Executive. The articles deal with the annual renewal of the motorcycle taxi authorization, the linking of the motorcycle registration to the presentation of an inspection report, and the list of bodies responsible for inspection.



"In effect, the requirements imposed by the questioned norm reflect exacerbated rigor without providing plausible justification for limiting the exercise of economic activity by motorcycle taxi companies and similar companies, as well as the exercise of economic activity by the worker himself", stated the judge.







Furthermore, Casconi stated that four other devices violate constitutional principles of proportionality and reasonableness: requirement to install a motorcycle taxi company in Catanduva, demonstration of assets of R$50 thousand for company registration, minimum distance of 100 meters between the company and taxi and bus stops, and a limit on the driver transferring from one company to another to four times in 12 months.



“In addition to the defects already highlighted, the provisions also touch on economic freedom, by imposing restrictions that restrict the free exercise of motorcycle taxi activities, whether from the company's perspective (creating, for example, a market reserve), or from the worker's perspective. (mitigating the right to perform the function)”, he stated.