On May 15, the Georgia Supreme Court unanimously rejected an appeal from Atlanta taxi drivers seeking recovery funds from the state for “deregulatory takings.” The taxi cartel had argued that the deregulation of ride-sharing services such as Uber and Lyft had decreased the value of taxi medallions to such an extent that the taxi industry had become entitled to compensation by the state.
The court not only wholly rejected the argument, but also declared that taxi operators have no right to an “unalterable monopoly.” Simply put, purchasing the medallions from a government agency does not entitle the buyer to lost market value caused by new entrants. Taxi operators can compete and innovate, but they cannot fall back on the support of the state. In coming to this decision, the court relied on similar decisions in Chicago and Minneapolis, where other states dealt with similar arguments.
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