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Brazilian Federal Supreme Court considers unconstitutional prohibition by municipal law of individual transportation by applications

The Brazilian Federal Supreme Court (STF), in a session on Wednesday (8), concluded the trial on municipal laws that restrict disproportionately or prohibit the activity of individual passenger transportation through applications. The Plenary decided that the prohibition or disproportional restriction of this activity is unconstitutional, since it represents a violation of the constitutional principles of free enterprise and competition.

It was unanimously granted the claim of The Action Against the Violation of a Constitutional Fundamental Right (ADPF) 449, filed by the Social Liberal Party (PSL) against the Law 10,553 / 2016 of Fortaleza (CE), which prohibits the use of private cars, registered or not registered in applications, for individual andprev remunerated transportation of people and establish a fine of R$ 1,400 to the driver of the vehicle. Also in unanimous voting, it was denied the claim of the Extraordinary Appeal (RE) 1054110, with recognized general repercussion, in which the City Councill of São Paulo (SP) questioned the decision of the State Court of Justice (TJ-SP) that declared unconstitutional the Municipal Law 16,279 / 2015, which prohibited this way of transportation in the city of São Paulo.

The Justice Luís Roberto Barroso, rapporteur of the RE 1054110, pointed out that free initiative is one of the foundations of the Brazilian State, alongside the social value of labor, and that the model established in the Constitution is the model of market economy. For the Justice, it is not possible for a law, arbitrarily, to withdraw a certain economic activity from the market, unless there is some constitutional basis.

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