WIREDGOV

EU law prohibits aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods, in so far as it affects trade between Member States.

In London, both London taxis (Black Cabs) and private hire vehicles (minicabs) are vehicles which carry passengers for consideration. Only Black Cabs are permitted to ‘ply for hire’ (that is, solicit or wait for passengers without any pre-booking). In contrast, minicabs can only pick up people who have pre-booked their services. Further, drivers of Black Cabs are subject to strict standards in relation to their vehicles, their fares and their knowledge of London, whereas those standards do not apply to minicabs.

Transport for London (TfL) and the London Boroughs are the traffic authorities for almost all the roads in London. TfL permits Black Cabs to use the bus lanes that are managed by it, but prohibits licensed minicabs from doing so, during the hours when bus lane restrictions are operational. Most London Boroughs have also adopted that policy with respect to roads for which they are responsible.

Eventech is the registered keeper of all the minicabs of its parent company Addison Lee plc, which is the operator of a fleet of minicabs in London. The London Borough of Camden served two penalty charge notices on Eventech due to the fact that two drivers of Addison Lee minicabs had used a bus lane in central London. Eventech challenged those notices, claiming inter alia that the bus lanes policy constitutes State aid to the operators of Black Cabs, which is contrary to EU law.

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