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5th Circ. OKs Cab Permit Plan Over Competition Objections

Law360, New York (October 12, 2011, 7:22 PM EDT) -- The Fifth Circuit on Monday affirmed that the city of Houston's plan to distribute taxi licenses based on the size of cab companies does not constitute an anti-competitive business practice, as a group of small cab company owners had claimed.

The suit was brought by the Greater Houston Small Taxicab Company Owners Association, which took issue with the city's license distribution structure, which favors larger, 24-hour full-service taxi companies over small- and mid-sized companies.

Under the city's four-year distribution plan, small companies would enter a lottery...
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