Court Rules Uber Did Not Violate Antitrust Laws In Philadelphia

PHILADELPHIA (CBS) -- A federal appeals court in Philadelphia has ruled that Uber did not violate antitrust laws in another setback to the traditional taxi industry.

In a 26-page decision for the Third Circuit U.S. Court of Appeals, Judge Marjorie Rendell wrote even if Uber "inundated the Philadelphia taxicab market," it was "not anticompetitive."

Rather, she says it "bolstered competition by offering customers lower prices, more available taxis, and a high-tech alternative to the customary method of hailing taxis and paying for rides."

The Appeals Court ruled the Philadelphia Taxi Association, along with more than 80 individual taxicab companies, failed to show that Uber violated the Sherman Act by depressing competition.

Lawyers for the taxis argued when they were first required in 2005 to have a medallion issued by the Philadelphia Parking Authority, the going rate was only $60,000. By 2014, each medallion was valued at $545,000.

Uber began operating in Philadelphia the same year, without securing medallions. By 2016, the taxi industry says the value of each medallion dropped to $80,000.

Court documents show in Uber's first two years in Philadelphia, nearly 1,200 cab drivers left their respective companies to drive for Uber, and the taxi industry experienced a 30 percent drop in earnings.

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