The transport sector in Gran Canaria has been embroiled in a prolonged conflict between VTC companies, such as Uber or Cabify, seeking greater liberalization, and the protectionist stance of the taxi sector and the territory, defended by the Sustainable Mobility Department of the Cabildo de Gran Canaria. This confrontation has led to an extensive series of legal disputes that have reached the Supreme Court.
The latest chapter in this saga began this year with the admission of a new appeal by the Contentious-Administrative Court number 2 of Las Palmas de Gran Canaria. This appeal, filed by a Cabify subsidiary, challenges the refusal of the Sustainable Mobility Department to grant VTC authorizations, adding to other ongoing proceedings and questioning the transport model implemented on the island.
The origin of the dispute lies in the application of the Canary Islands Road Transport Regulation Law, which for over a decade has limited the growth of these licenses. The regulation established a proportion of one VTC authorization for every 30 taxis, designed to prevent market saturation and protect the traditional sector. In Gran Canaria, this limit translated into a maximum of 102 VTC licenses compared to over 2,600 taxis, a figure the Cabildo considers appropriate for the island's reality.
However, the legal framework supporting the island government changed after the ruling by the Court of Justice of the European Union (CJEU) in June 2023. This ruling questioned the automatic application of limits like the 1/30 ratio if not justified by reasons of general interest and proportionality. This decision triggered an avalanche of appeals in the courts of Las Palmas, arguing that the denials by the Sustainable Mobility Department violated European law.
Following judicial setbacks in lower courts, the Cabildo de Gran Canaria has elevated the conflict to the Supreme Court. The island government's legal defense argues that European doctrine is not directly applicable to the archipelago's reality, due to its status as an outermost region, its territorial fragmentation, and double insularity. The high court has admitted the appeals, considering the need to establish clear doctrine on whether the uniqueness of the Canary Islands justifies specific restrictions against the liberal European criterion.
In parallel with the judicial battle, the regulatory context in the Canary Islands also changed. The regional Executive approved in August 2025 the Law 4/2025 on urgent modification of the Canary Islands Road Transport Regulation. This reform eliminated the 1/30 ratio limit and replaced it with objective criteria linked to the territory's carrying capacity, traffic congestion, air quality, or environmental sustainability. The regulation also established a temporary two-year suspension on the granting of new licenses, until August 2027, to allow the cabildos to define these new criteria.
The Cabildo's position is clear: a massive influx of VTCs could lead to congestion, increased emissions, and jeopardize the economic viability of taxis. VTC companies, on the other hand, argue that current restrictions limit competition and harm consumers, asserting that market opening would improve supply and adjust prices.
