Madrid wants Uber service probed for unfair competition

Authorities in Madrid asked Spain’s antitrust watchdog on Saturday to investigate whether Uber’s new low-cost airport transfer service constituted unfair competition.

The city council’s request follows the ride-hailing app’s return to the Spanish capital in 2016 after the CNMC competition regulator called for the government to lift a ban on the US company.

The recently launched Uber Airport service offers a tariff of €15 to €29 for a ride between Madrid’s Barajas international airport and the city centre. Standard taxi fares are fixed at €30.

Uber Airport “could violate several articles of the Law of Unfair Competition and consumer rights, if it is proven that the service is being operated at prices below operational costs and with the sole intention of gaining customers through unfair competition,” Madrid City Council said in statement.

Uber has come under attack from established taxi companies and some EU countries because it is not bound by strict local licensing and safety rules that apply to its competitors. Spanish taxi drivers have held three strikes in 2017, arguing that ridehailing apps constitute unfair competition.