The Israel Antitrust Authority, headed by David Gilo, has launched an investigation into the banning order issued by the Israel Airports Authority against GetTaxi drivers picking up passengers from Ben Gurion International Airport, sources inform "Globes."
Last week, the taxi app operator was notified by the Israel Airports Authority that “GetTaxi drivers may not accept orders via the application and pick up passengers from Ben Gurion International Airport, because it is not a special, pre-arranged fare.” The Israel Airports Authority claimed that GetTaxi did not receive a commercial license from Ben Gurion International Airport, and was therefore issued a banning order. GetTaxi’s lawyers filed an appeal against the banning order with the Israel Airports Authority.
The Antitrust Authority confirmed the report and said that the investigation that it initiated is in its early stages.
GetTaxi said, “We welcome any investigation that will bring a solution to the dismal situation that has been created. We trust the authorities to know how to deal with the problematic issue appropriately.”
Last week, GetTaxi accused former Ben Gurion Airport manager Shmuel Zakai (without mentioning names, of course) of giving preferential treatment to the Hadar and Kastel cab companies, and of having ulterior motives for preventing GetTaxi from operating at Ben Gurion. Hadar has held the concession for the taxi station at Ben Gurion Airport for many years, and Kastel is responsible for transporting El Al Israel Airlines Ltd. (TASE: ELAL) employees.
The law states that drivers who are not affiliated with the official airport concessionaire must pay a fee to the Israel Airports Authority upon exiting Ben Gurion. GetTaxi drivers paid this fee as well.
If the Antitrust Authority has opened an investigation, it stands to reason that this more than a GetTaxi gripe, and there is reason to suspect that there is a violation of competition rules, if not the law.
The Israel Airports Authority said, “The Israel Airports Authority has always worked to improve the service given to passengers, including increasing competition between service providers at Ben Gurion International Airport. Commercial activity in Israel’s airports is subject to the 1984 regulations, according to which it is forbidden to engage in commercial activity on Israel Airports Authority grounds without receiving the appropriate commercial license to do so. These matters apply to the taxi industry in particular, where serious violations took place, particularly against tourists, before the regulations were implemented.
“Clear rules were set forth in the Israel Airports Authority guidelines that regulate taxi operation in Ben Gurion Airport to allow taxis that have not received authorization to operate at Ben Gurion, and who do not pay fixed licensing fees, to operate at Ben Gurion, so long as they fulfill the conditions set forth in the guidelines. Thus, for decades, taxi drivers have operated in Israel, while preserving reasonable and fair competition among drivers.
“Recently, GetTaxi, through its drivers, has begun flagrantly violating the Israel Airports Authority regulations, and running a pirate operation, where in some cases their activities caused real disruptions, and even caused severe traffic violations, which were carried out by the taxi drivers. In this manner, GetTaxi has attempted to circumvent the rules of fair competition and to seriously harm the taxi drivers who are operating legally and fairly, mostly the drivers who have been authorized to operate at Ben Gurion on a regular basis, and not intermittently, after having participated in and won a public tender that was intended to establish this sort of commercial activity for the public’s benefit, through maintaining a high level of service.
“The large amount of serious evidence gathered by Israel Airports Authority inspectors suggests activity that was well organized and planned, and was intended to circumvent Israel Airports Authority regulations and to upset the balance between service providers at Ben Gurion, and raises deep suspicion of irregularities, including serious, irreversible harm to tourists, whose first encounter with Israel is often in a taxi. For these reasons, the Israel Airports Authority has issued a restraining order banning GetTaxi and its taxis from Ben Gurion for six months, in order to prevent further violations of the law by the company.
“So long as the Antitrust Authority wishes to investigate the matter, The Israel Airports Authority will cooperate with the Antitrust Authority in its investigation and will seriously consider its recommendations, should any be submitted for consideration. I emphasize that this banning order will not apply to the company’s drivers who sign a commitment to operate in accordance with the Israel Airports Authority’s guidelines.”
Published by Globes [online], Israel business news - www.globes-online.com - on May 29, 2014
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