Uber, Lyft Find Ally in New York's Attorney General

News Assistant
1 min read
This story originally appeared on CNBC

A New York State official has formally taken a step on the side of Uber.

New York State Attorney General Eric T. Schneiderman sent a letter to the New York City Taxi and Limousine Commission on Friday urging the organization to revise a proposed rule that would protect traditional car services from the competition of app-based services such as Uber and Lyft.

The rule would require official agreements between vehicle dispatchers before allowing drivers to leave on assignments from an unaffiliated base, possibly a rival.

In the letter, the attorney general said the proposal would "needlessly restrict competition in the for-hire vehicle industry."

He added the proposed rule would restrict drivers' options and consequently raise "serious antitrust issues" that would hurt consumers.

However, the attorney general noted in the letter that he supported some elements of the proposed rule, including a compensation system and a procedure for handling disputes.

A representative from the Taxi and Limousine Commission said it was still looking into the matter.

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Are you paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.

Latest on Entrepreneur

Entrepreneur Media, Inc. values your privacy. In order to understand how people use our site generally, and to create more valuable experiences for you, we may collect data about your use of this site (both directly and through our partners). By continuing to use this site, you are agreeing to the use of that data. For more information on our data policies, please visit our Privacy Policy.