November 25, 2014
Earlier today, the Competition Bureau launched a new advocacy publication entitled The Competition Advocate. In this welcome new initiative, by the Bureau’s also new Competition Promotion Branch, it joins other antitrust agency advocacy publications including the U.S. FTC’s Competition Matters blog.
In its new note, which is part of its overall competition advocacy, the Bureau has begun with competition in the taxi sector (and in particular, encouraging digital dispatch services – without, however, naming Uber, Lyft or other new entrants).
The Bureau argues that digital dispatch services promise to increase innovation and competition in the taxi sector and offer new features for consumers, including alternative payment options and the ability to locate nearby vehicles. The Bureau also argues that local regulators should consider whether restrictions on digital dispatch services and ride-sharing applications are necessary, recommending that authorities consider the least restrictive means to regulate the new technologies.
Interestingly, the Bureau also highlights some common anti-competitive taxi industry complaints, including: the inability of some drivers to obtain taxi plates; drivers being forced to deal exclusively with a single dispatcher; and complaints related to wait times and prices.
In publishing its new advocacy note, the Bureau is following a consistent policy path in which it has historically attempted to persuade local regulators in a variety of sectors (for example, dental hygiene, pharmacy and real estate) to adopt the least restrictions to protect competing interests to competition. The Bureau’s increasing use of the web and social media to deliver its competition advocacy messages is a new and a positive development though.
Given the significant economic and political interests involved in local taxi markets, however, it remains to be seen whether local regulators will seriously consider competition in determining whether to challenge or allow the new ride-sharing technologies.
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