The Competition Authority's settlement with Hreyfil regarding restrictions on the employment rights of taxi drivers

Taxi drivers are permitted to drive for more than one taxi company.

The Competition Authority and Hreyfill svf. have entered into an agreement. agreement due to Hreyfill's conduct, which consisted of prohibiting taxi drivers under contract with Hreyfill from using the services of other taxi companies. The settlement provides that Hreyfill will not prevent taxi drivers who drive for the company from also using other service providers for taxi drivers. Furthermore, Hreyfill will make other necessary changes to its articles of association and its station regulations, respectively, to ensure compliance with its obligations under competition law.

The settlement brings the Competition Authority's investigation into Hreyfli to a close. A reasoned decision on the matter will be published in the near future.

Background information and general guidance for taxi ranks

The matter originated from a complaint by Hopp Taxis Ltd, which complained about the aforementioned conduct of Hreyfill. Following Hopp's complaint, the Competition Authority interim decision No. 28/2023, Probable breach of competition law by Hreyfils svf., where Hreyfli was made to desist from the conduct. The provisional order provides a detailed discussion of the matter and the circumstances.

The Competition Authority was of the opinion that Hreyfill's conduct constituted a likely infringement of both Article 10, in relation to Article 12 of the Competition Act, concerning illegal collusion, and Article 11 of the Act, concerning the abuse of a dominant position. European competition authorities, including in Finland, has recently examined the market for taxi services and provided guidance to operators working in the market. It has been pointed out, among other things, that taxi ranks are considered undertakings for the purposes of competition law, as is each taxi driver (licence holder). This means that agreements between these parties must not constitute an illegal restraint of trade. Such agreements could include those that limit a taxi driver's professional rights and their ability to use the services of other taxi companies.

The Competition Authority wishes to issue a general recommendation to taxi firms operating in Iceland to ensure that their contracts with taxi drivers do not contain unlawful anti-competitive restrictions.

Here The settlement can be reached.