Facts
The City of Zurich issued a new Taxi Ordinance (TaxiV) on July 8, 2009, which, among other things, provides for the establishment of a binding tariff structure and prohibits the brokerage of transport orders to taxis without an operating permit and a taxi badge from the City of Zurich. The [X. AG] filed a municipal appeal with the District Council of Zurich and requested the repeal of certain provisions of the Taxi Ordinance. The District Council partially upheld the appeal and repealed the disputed provisions. The City of Zurich appealed to the Administrative Court of the Canton of Zurich, which dismissed the appeal. The City of Zurich then filed an appeal with the Federal Court.
The appeal is directed against the repeal of Art. 16 para. 1 and Art. 24 para. 2 TaxiV by the District Council and the Administrative Court. Art. 16 para. 1 provides for a binding tariff structure, while Art. 24 para. 2 regulates the prohibition of brokerage of transport orders to taxis without an operating permit and a taxi badge from the City of Zurich.
Considerations
The Federal Court examined the admissibility of the appeal and found that the City of Zurich is entitled to appeal. It then reviewed the interpretation of the Federal Constitution by the lower court and examined whether the disputed provisions of the Taxi Ordinance are compatible with the freedom of economic activity (Art. 27 Cst.) and the IMA.
The Federal Court concluded that the binding tariff structure in Art. 16 para. 1 TaxiV constitutes a deviation from the freedom of economic activity, as it eliminates the price mechanism and prescribes that taxi companies offer their services at the same price. This is not justified by a public interest, but serves to protect taxi companies from price competition.
The…