August 4, 2021

VTC license sale canceled before 2 years and electronic registration

The Supreme Court has annulled two articles of the royal decree on the lease of vehicles with driver (VTC), thereby annulling the prohibition of selling licenses before two years of its issuance and the obligation to maintain an electronic record with customer data and paths.

In two sentences, the Third Chamber of the administrative litigation has considered two appeals against the royal decree, which dates from 2017, presented by the National Commission of Markets and Competition (CNMC) and the Uber company.

The decree established that licenses could not be transmitted until after two years of being issued, an end that the Supreme Court has now annulled, which considers that said limitation was not made to avoid fraud, but to temporarily limit the increase in supply .

Being a restriction based on economic reasons, clarifies the Supreme Court, clashes with the Law of Market Unity Guarantee, since “it unreasonably limits the freedom of establishment and the freedom of movement.”

Likewise, the decree appealed contemplated the obligation to communicate to the administration, by electronic means, data related to the service provided, such as the place and date of conclusion of the contract; the place, date and time at which the service is to be started and the place and date on which it is to end; the registration of the vehicle and the identity of the lessor and the lessee.

This information passed to an electronic registry, whose purpose was to ensure that most of these vehicles developed their activity in the autonomous community that granted the license.

But the Supreme argues that these data are not only irrelevant to control such activity, but that they jeopardize the protection of customer data, by creating a nationwide database that allows establishing patterns of behavior in relation to mobility and The use of this service.

Three of the seven magistrates of the administrative litigation room have expressed a particular vote in favor of maintaining the royal decree, which they considered to be adjusted to law.


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