Alleged foreclosure effects of exclusivity agreements between taxi drivers and cabs dispatching systems

In 2018 the Italian Competition Authority held an investigation to assess whether the non-compete agreements between three traditional radio taxi cooperatives and affiliated taxi drivers in the geographic market of the city of Rome might potentially harm entry and competition by alternative cab dispatching open platforms. Lear assisted one of the incumbent radio taxi cooperatives showing that the non-compete clauses did not limit competition for taxi drivers’ affiliation by the new entrant in the market of the city of Rome, and that such clauses are necessary for the cooperative’s business model to survive. Even though the Italian Competition Authority concluded that the non-compete clauses breached Art. 101 TFEU, the Regional Administrative Tribunal (TAR) in 2019 overturned its decision.