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Constitutional Court declares unconstitutional the Draft Law Amending Ordinance No. 27/2011 on Road Transport

Alina Iozsa
News
13 December 2024

On November 5, 2024, the Constitutional Court issued a final ruling on the constitutionality of the draft law (Draft) issued by Parliament to amend and supplement Government Ordinance No. 27/2011 on road transport. The Court declared the Draft Law unconstitutional in its entirety.

The Draft was submitted to the Constitutional Court (CCR) for a priori review following a challenge invoking that the Draft leads to monopoly in the road transport activities. This challenge was made in accordance with Article 146(a) of the Romanian Constitution [1]

Although this Decision follows a lengthy period since the initial challenge in early 2023 – the Court held no fewer than 15 adjournments during its comprehensive analysis – the finding of unconstitutionality successfully prevents the establishment of a market monopoly.

In its ruling, the Constitutional Court argued that the Draft Law's entry into force would create significant inequity between road passenger transport operators holding intra-county route licenses valid until June 30, 2023 (extended to December 31, 2024), and operators without valid licenses as of June 30, 2023, who would be applying for access to regular road transport services for the first time.

Furthermore, the lack of objective criteria for allocating routes, particularly concerning fares per route/km when granting exclusivity, distorts competition in this specific market. This favors existing operators holding route licenses, violating constitutional provisions related to the market economy and the state's obligation to ensure fair competition.

Such a situation would severely restrict or eliminate competition in intra-county road transport and distort the purpose of Competition Law No. 21/1996, which ultimately aims to protect consumers. Without competition, consumers cannot benefit from higher-quality services at more advantageous prices.

This Decision definitively resolves this issue and should pave the way for new regulations concerning the provisions of Government Ordinance 27/2011. These regulations should foster fair competition in the road transport market and allow new transport operators access.

 

[1] The Constitutional Court has the following responsibilities: (a) to rule on the constitutionality of laws before their promulgation, upon referral by the President of Romania, one of the Presidents of the two Chambers of Parliament, the Government, the High Court of Cassation and Justice, the Ombudsman, at least 50 deputies or at least 25 senators, and also, ex officio, on initiatives to revise the Constitution;

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