EU Court Asked to Revisit Cabify-Auro Arbitration Dispute

According to MLex, the dispute has once again been referred to the Court of Justice of the European Union (CJEU) on an expedited basis, with Spanish judges seeking clarification on whether and how national courts should review arbitration awards that may conflict with EU antitrust rules.

The latest referral stems from a years-long disagreement between Cabify and Auro over contractual arrangements in Spain’s vehicle-for-hire (VTC) market. At the center of the dispute is an arbitration award that found certain contractual provisions, including exclusivity arrangements, incompatible with competition law.

Public court records show that Cabify challenged the award before the High Court of Justice of Madrid, arguing that EU competition rules had not been properly applied. The case eventually triggered broader questions about the role of national courts in reviewing arbitral decisions when European competition law is implicated.

The referral, registered as Case C-244/25 before the CJEU, asks the Luxembourg-based court to interpret the interaction between EU law, arbitration, and judicial review. Official EU documents indicate that the Madrid court formally sought a preliminary ruling in April 2025.

Competition-law concerns at the center

The dispute has drawn attention from antitrust practitioners because it involves Article 101 of the Treaty on the Functioning of the European Union, which prohibits agreements that restrict competition unless specific exemptions apply.

Read more: Spain: Regulator criticizes Government over restrictions on Uber, Cabify

Earlier proceedings focused on whether contractual restrictions between Cabify and Auro unlawfully limited competition in the VTC sector. Arbitration tribunals and Spanish courts reached differing conclusions at various stages of the litigation, leading to repeated appeals and constitutional challenges.

The case raises broader questions about whether arbitration awards should receive enhanced judicial scrutiny when they involve provisions that may affect market access, exclusivity arrangements, or competitive conditions in regulated transportation markets.

The latest CJEU referral follows a significant ruling by Spain’s Constitutional Court in December 2024.

The Constitutional Court overturned an earlier Madrid High Court judgment that had partially annulled the arbitration award. The court found that the Madrid judges exceeded the scope of review permitted in arbitration cases by effectively reassessing the merits of the dispute rather than limiting their examination to legally permitted grounds. The matter was returned to the Madrid court for reconsideration.

The Constitutional Court’s decision revived debate over the balance between protecting the finality of arbitration awards and ensuring compliance with mandatory provisions of EU law, particularly competition rules.

Source: MLex