The Constitutional Court (TC) has established that Auro will not have to operate with Cabifyand has annulled a ruling by the Superior Court of Justice of Madrid (TSJM) that violated the effective judicial protection of the platform against the exclusivity claims of the VTC vehicle company.
In a ruling dated December 2 to which he has had access EFEthe TC indicates that the TSJM, which will have to issue a new ruling, exceeded its powers.
The magistrates conclude that external judicial control of arbitration awards is possible due to the non-application of rules that the Court of Justice of the European Union (CJEU) has declared as public order.
After Auro withdrew the more than 1,000 VTC vehicle licenses – those of its subsidiary Cibeles – that it offered on the Cabify platform, it lost approximately 20% of its fleet in Madrid, and decided to go to an Arbitration Court.
Cabify claimed that Auro had breached the non-competition agreement under the agreement signed between the two in December 2018, and requested that it immediately cease operating VTC licenses, in addition to requesting a compensation of 41.8 million euros.
The award partially ruled in favor of Auro, which in practice meant that it could operate with platforms other than Cabify, such as Uber.
But Cabify went to the TSJM, which in October 2021 partially upheld Cabify’s claims regarding the exclusivity that Auro had to maintain, which appealed to the TC.
The Chamber concludes that a violation of a fundamental right has occurred, which entails the annulment of both the TSJM ruling and a subsequent order.
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