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BGH Upholds Return-to-Base Rule for Mietwagen

The decision strengthens local powers to limit app‑based price competition and sends platform operators toward further EU or constitutional challenges.

Overview

  • The Bundesgerichtshof confirmed on Wednesday that Mietwagen must return immediately to their registered firm headquarters after each passenger trip, upholding earlier Cologne rulings and rejecting a referral to the Federal Constitutional Court or the European Court of Justice.
  • The court found the Rückkehrpflicht consistent with national law and not in breach of EU rules in this purely German case, because the companies and trips at issue have no cross‑border element.
  • Municipal measures now interact with the ruling: Cologne enacted a cap on how much cheaper Mietwagen may be than taxis (maximum 20% cheaper) on June 1, and cities are being encouraged to adopt similar minimum‑fare controls.
  • Ride‑hailing firms and some Mietwagen operators say the rule forces extra empty mileage, raises costs and emissions, and announce plans to seek new legal routes that could create a cross‑border case for the European Court of Justice or a fresh constitutional challenge.
  • The obligation rests on long‑standing German transport law and past Federal Constitutional Court decisions that treat taxis as public‑service vehicles with different duties, a legal backdrop that keeps the dispute alive politically and legally as parties prepare further challenges.