Uber and Bolt against minimum prices: Now the next instance will decide.

The lawsuit over minimum prices for app-dispatched rental-car rides in Cologne reaches the next instance. At the Higher Administrative Court of North Rhine-Westphalia in Münster, two complaints have been filed in expedited proceedings. They concern decisions of the Administrative Court of Cologne in proceedings involving Bolt and another rental-car company. When the Higher Administrative Court will rule on this remains open.

In Cologne, minimum prices for such rental-car rides have been in effect since the beginning of June. Consequently, trips via providers such as Bolt or Uber may be no more than 20 percent cheaper than comparable taxi rides. According to the city, the guideline is meant to create equal and fair competitive conditions.

Administrative Court Sees Legal Problems

The Administrative Court of Cologne had examined the regulation in July in several expedited proceedings and had come to the conclusion that the minimum prices were likely unlawful. The court flagged several aspects.

Among other things, the Cologne mayor, in the view of the court, would not have been allowed to decide on the minimum prices without the involvement of the council. In addition, the city had enacted a regulation without the corresponding authority whose effects extended beyond its own city limits.

The Administrative Court also saw fundamental legal problems with transferring taxi prices to the taxi and rental-car traffic. Taxi and rental-car traffic differ, which is why a corresponding transfer of prices is generally not permissible.

Complaints in Two Proceedings Pending

The Higher Administrative Court must now in an expedited procedure determine whether it shares the assessment of the first instance. In Münster, the complaints of the City of Cologne against interim decisions in favor of Bolt and of another rental-car company are pending.

At the end of July, the Administrative Court of Cologne also provisionally ruled in favor of a subsidiary of Uber. Regarding this proceeding, the Higher Administrative Court stated that at the time of the initial report there was not yet any complaint from the City of Cologne.

Essen Suspends Minimum Prices Again

Also, Essen had tried to regulate the price competition between taxi and rental-car companies with minimum prices. As the first city in North Rhine-Westphalia, Essen introduced corresponding guidelines for rental-car trips in January.