The Croatian Competition Agency (AZTN) has cautioned against proposals to introduce minimum taxi fares in upcoming amendments to the Road Transport Act, stressing that such measures would breach competition law.
In response to recent media reports, AZTN underlined that any agreement on prices between competitors — including those reached through associations, chambers, or industry groups — is strictly prohibited. The Competition Act expressly bans arrangements that directly or indirectly fix purchase or selling prices, classifying them as the most serious infringements, punishable by fines of up to 10% of total turnover.
AZTN explained that while fixing minimum or mandatory fares is unlawful, setting maximum prices in limited circumstances — such as for taxi services from airports or on specific routes — can be permissible to protect consumers from excessive charges while still allowing competition below the cap.
The agency also recalled its past opinions warning that reducing the number of taxi licences in cities restricts competition and leads to higher prices. It has consistently called for more flexible licensing regimes to avoid unnecessary barriers to market entry.
While acknowledging the authority of lawmakers and local governments to regulate taxi services, AZTN emphasised that pricing should be determined by supply and demand, with businesses free to compete on both price and quality. This, it said, ultimately benefits competitors, lowers costs for consumers, and improves service standards.
Source: https://www.aztn.hr/medijske-najave-o-utvrdivanju-minimalne-cijene-taksi-usluga/
