The introduction of new restrictions for VTC services in Catalonia could lead to significant changes in the urban transport market. The bill currently under consideration in parliament could not only reduce the number of licenses but also fundamentally alter the balance between traditional taxis and services like Uber and Cabify. For local residents, this may mean fewer transportation options and higher service costs.
As El Pais reports, industry representatives have already appealed to the European Commission for intervention. The letter sent to Transport Commissioner Apostolos Tzitzikostas warns of the risk that the VTC business could disappear entirely if the bill passes. The document stresses that the proposed measures could conflict with European law and result in the loss of thousands of jobs.
Bill details
The main idea of the initiative is to classify taxi services as being of special economic significance, which would automatically limit opportunities for VTC companies. The bill calls for VTC licenses to be granted for only two years, without the possibility of renewal or transfer, effectively leading to the gradual disappearance of such services. In addition, the new rules introduce further requirements for licensing and operations, which industry representatives consider excessive.
According to industry associations, if the law comes into force as it stands, only a third of the current VTC licenses will remain in Barcelona. Priority for issuing new permits will be given exclusively to taxis. If the need arises for new VTC licenses, they will be issued only for a short period and without the possibility of renewal. This will gradually reduce the number of such operators.
Economic consequences
Industry experts warn of serious economic repercussions. According to their estimates, the adoption of the law could lead to the loss of nearly 6,000 jobs and a decrease in tax revenues by more than 70 million euros. The total economic impact is estimated at 326 million euros. A letter to the European Commission also notes that the draft law was prepared without consulting VTC company representatives and only reflects the interests of one side of the market.
In addition to license restrictions, the bill requires all taxi and VTC drivers to have B1-level proficiency in Catalan. Some political groups are calling for this requirement to be raised to B2 level. The law also introduces mandatory geolocation of all vehicles and continuous monitoring by authorities, enabling rapid detection of violations.
Reaction and next steps
While the Catalan parliament continues debating the bill, representatives of VTC companies are seeking to draw the attention of European bodies to the issue. They are demanding an expedited review of the already opened case regarding a possible violation of EU regulations concerning VTC operations in Spain. In addition, industry associations insist on holding a meeting with an EU commissioner and reminding both Spanish and Catalan authorities of their obligations under European law.
According to El Pais, if the law is passed without changes, the passenger transport market in Catalonia could undergo a major transformation in the coming years. It is already known that of the 990 active VTC licenses in Barcelona, only 390 will remain, while the total number of taxis in the region exceeds 10,000. The authorities also reserve the right not to renew licenses for environmental reasons or if there is an oversupply in the market.
In recent years, similar disputes between traditional taxis and VTC services have arisen in other regions of Spain as well. In Madrid and Valencia, proposals to restrict the activities of Uber and Cabify were also discussed, leading to mass protests and court proceedings. In most cases, authorities have tried to reach a compromise between the interests of different market participants, but in Catalonia the situation has escalated more sharply. According to russpain.com, such conflicts are becoming more common amid the growing popularity of digital platforms and changes in urban transport structure.
