The first impacts of the Act on Transport Services meet expectations
The aim of the Act on Transport Services is to introduce transport services as a comprehensive service for customers and offer users flexibility and freedom of choice. The Act on Transport Services creates preconditions for the digitalisation of transport and for new business models. The act mainly entered into force on 1 July 2018.
In connection with enacting the Act on Transport Services, the Parliament insisted that the Government closely monitor the effects of the legislative entity and take steps to change regulation, where necessary. The Ministry of Transport and Communications has submitted a follow-up report on the first stage of the Act on Transport Services to the Transport and Communications Committee on 19 December 2018.
According to the report and based on the observations made so far, the initial effects of the legislation largely meet expectations. The effects observed do not suggest any need to amend the Act on Transport Services.
Along with the data regulation in the Act on Transport Services, mobility service providers have opened a wealth of interfaces for essential data and the opening of sales interfaces has also started. According to feedback from operators, new services and systems have actively been developed.
The number of companies and drivers in the taxi field has increased considerably, and the services and pricing models seem to have diversified. It seems that the fears expressed in connection with drafting the bill about customers being cheated have not materialised. It currently appears that the side-effects related to grey economy have not increased either.
The key aim of the Act on Transport Services was to support long-term processes of change. Therefore, final conclusions about its effects should only be drawn later.
The effects of the act will be closely monitored in the coming years in order to recognise changes in the transport system and market situation. The effects of the act will be extensively reported in the manner required by the Parliament’s resolution next time in 2022 at the latest.
After the entry into force of the act, the Ministry of Transport and Communications has pursued close dialogue about its effects with different operators. The Ministry will set up a market forum, in which different operators can exchange experiences about the effects of the legislation in the future. Close cooperation between the authorities will continue.
The third stage of the Act on Transport Services is currently being drafted by Parliament.
For more information, please contact:
Elina Immonen, Ministerial Advisor, tel. +358 295 34 2126, Twitter @ImmonenElina
Joel Karjalainen, Senior Officer, tel. +358 295 34 2028, Twitter @profkarjalainen
Laura Vilkkonen, Director General, tel. +358 295 34 2391, Twitter @vilkkonen