Research Report
Analysis of Overseas Laws and Regulations on Mobility-as-a-Service Industry
Ⅰ. Backgrounds and Purposes
▶ Government designation of promising new industries for Mobility-as-a-Service (MaaS) and expansion of investment
○ The government presented 22 strategic technologies and 10 promising new industries including the mobility-as-a-service service industry as a way to prepare for rapidly changing industry trends and actively respond to the global competitive environment.
▶ Active initiative of the Ministry of Land, Infrastructure and Transport and local governments and expansion of private investment in the MaaS service industry
○ The Ministry of Land, Infrastructure and Transport has invested a total of 3.2 billion won since August 2018 and is conducting a MaaS demonstration project in Jeju Island led by the Korea Transportation Safety Authority.
○ The Seoul Metropolitan Government opened the Seoul-type traffic information platform in April 2020, and plans to provide information on all means of transportation such as buses, subways, taxis and electric kkick boards through MaaS.
○ The first MaaS app released in Korea is ' Hi-Move ', which was released in April 2020.
○ Among large domestic companies, Kakao is increasing the number of contact points for transportation through mobile navigation, taxi, luxury taxi calling, surrogate driving, parking, and electric bicycle based on the ' Kakao T ' app, and ultimately, the optimal route based on ' Kakao T ' We plan to make it possible to use search, reservation, and payment all at once.
▶ However, due to the nature of MaaS, which requires the connection of various means of transportation, it is necessary to review the existing legal systems and regulations that can support the connection between sectors.
○ For MaaS service, it is essential to link and integrate traffic/mobility information between existing public transportation means (bus, subway, taxi, etc.) and new mobility service fields (shared car, personal mobility, demand response service, etc.). Mobility information is a public good, so it is necessary to establish a legal and institutional basis that can be shared and linked.
○ In the process of creating and operating a smart city, the government designates a smart regulatory innovation district so that various innovative technologies and services, including MaaS services, can be demonstrated and commercialized without restrictions due to regulations, and implement smart innovation projects and smart demonstration projects within the district. In the process of preparing legal and institutional support measures for innovative technologies and services such as laying the groundwork.
▶ It is time to study the direction of the international legal system by investigating and analyzing the regulatory trends in the domestic and foreign legal system aspects of the MaaS industry, which is a promising new industry in the future , and drawing implications.
○ The MaaS service industry is a key issue in the new mobility industry in terms of its status as a new promising new industry, active promotion movements at the government (central government and local government) level, investment in new industries at the private level, and maximization of mobility in terms of users.
○ It is necessary to timely identify the operating status and latest trends of overseas legal systems for the development of the MaaS industry, and to analyze them in-depth at the legal level to draw implications for the improvement of domestic laws related to the industry.
○ It is necessary to find a way to improve the regulatory system for the introduction and development of new industries by conducting an in-depth investigation of each country's approach strategy for the MaaS industry, regulatory issues by major issues, and differences in regulatory levels, focusing on individual cases.
Ⅱ. Major Content - Summary of Case Review of Overseas Legal System
▶ Implications of the US MaaS industry-related legal system
○ Legislation exists for safe TNC service
- Among TNC regulations, the driver background check process verifies factors such as criminal history, which is like an institutional safety net that enables passengers to safely use the service.
○ Definition of TNC-related insurance and liability
- TNC Insurance divided the stages of operation to classify the stages to which the charge exemption clause can be applied, and according to the stages, appropriate insurance requirements to fill the coverage gap are applied.
○ Basis for investment in regulations and finances for revitalization of new industries
▶ Implications of the European Union's MaaS industry-related legal system
○ Grounds for protecting the rights and interests of users of transportation/ mobility services
- Regulation 181/2011 promotes convenient bus use by passengers by specifying and guaranteeing the rights of bus passengers in detail
- Clarify rights and obligations to receive compensation (or assistance) in the event of a bus accident
- Providing non-discriminatory access rights to persons with disabilities (or persons with reduced mobility)
▶ Implications of the UK MaaS industry-related legal system
○ Proposal of laws based on public transportation/mobility services through the Transport Act
- The bus franchise system is a notable factor in that it applies bus services that are judged appropriate for each region, rather than applying representative bus services to the entire area.
- Single payment using mobile technology, etc. for two or more bus trips through the advanced ticketing system
○ Existence of grounds for applying innovative services to non-profit services
- By introducing special operating forms such as minibuses, free-ride buses, and demand-response buses for non-profit routes, the effect of cost reduction and smooth linkage between means
○ Innovative service safety management legislation exists
- Strengthen security management (ex. user information management, etc.) and safety management (ex. internal safety team operation, etc.) through the Ride Sharing Service Safety Management Act
▶ Implications of France's MaaS industry-related legal system
○ It is possible to enact and amend laws related to innovative services through the Mobility Orientation Act.
- By stipulating the shared service operating conditions (Mobility Orientation Act), the information that the operator must provide, the number and characteristics of shared transportation means, parking space conditions, and prohibited matters are specified by the shared service operator.
▶ Implications of Finland's MaaS industry-related legal system
○ Present the rationale for promoting the spread of user-centered MaaS services
- Through the Passenger Transport Service Act, the law was amended in the field of competition among mobility service operators and data openness, and the provision of user-oriented mobility services including MaaS services was promoted.
- MaaS service development strategy setting according to city and local city
○ Grounds for new industry support
- Provision of statistical information related to mobility services by the Transportation Security Administration (when public interest is large), obligatory provision of information by integrated mobility service providers
- Promotion of market function and free competition following the deregulation of business
▶ Implications of Germany's MaaS industry-related legal system
○ Existence of support for preferential treatment when using innovative services
- Priority parking rights are provided to car sharing service users through the 2017 Car Sharing Act, and operators are given the right to apply for a special permit for parking lot installation.
▶ Implications of Japan's MaaS industry-related legal system
○ Existence of laws to support the application of innovative services for public transportation business operators
- Supports about 1/3 of the cost required for the introduction of cashless payment for public transportation service providers
○ Obligation to comply with data standards for transportation business operators
- Implement various efforts to link data between MaaS transportation providers, such as reorganizing data through standard data format and standardizing application performance for transportation operators
▶ Implications of Singapore's MaaS industry-related legal system
○ Propose the rationale for promoting the spread of MaaS services through the enactment of laws related to branch-to-point passenger transportation
- Enactment of ｢Point-to-Point Passenger Transport Industry Act 2019｣ and introduce a new regulatory framework for street hail/ride hail services in earnest
○ Strengthen government management and supervision of the passenger transportation industry
- A separate license is granted depending on the service (street hail, ride hail, or carpool service) that the point-to-point passenger transport operator wants to provide, and the requirements for the existing industry are extended to all passenger transport services
- LTA (Land Transport Authority) and PTC (Public Transport Council) strengthen regulatory oversight to protect the safety and interests of service users and drivers
○ Anti-monopoly regulation and user protection in the platform transportation industry
- Prohibit monopoly agreements between operators and drivers to promote competition and protect the rights of users
- Anti-monopoly check on private transportation service by the competent minister by suggesting an appropriate maximum rate for the point-to-point passenger transportation service
- The fare required from users of the point-to-point passenger transportation service cannot exceed the maximum fare specified in accordance with the fare order.
▶ Implications of Australia's MaaS industry-related legal system
○ Propose the rationale for promoting the spread of user-centered MaaS services through the enactment of laws related to branch-to-point passenger transportation
- Reinforce regulations and management of new industries by quickly establishing new transportation business categories for ride-sharing services that do not comply with existing transportation law regulations
- Specify regulations on the scope of ride-sharing service, driver qualification requirements, vehicle requirements, etc.
○ Support for the protection of existing industries and integration between new industries
- Considering regulatory equity between existing industries (taxi industry) and new industries (eg Uber, etc.), promote competition and promote consumer benefits
- In order to alleviate the conflict between the newly emerged platform transportation business and the existing taxi industry, various policy supports are implemented for the existing industry (e.g., subsidy payment, taxi license fee reduction, etc.)
○ Establish regulations to protect workers' rights and service users for ride-sharing service drivers
- Working environment and workers' rights, such as the minimum wage for Uber drivers, unemployment benefits, union organization and collective bargaining rights, etc. are being discussed.
- In order to protect service users, issues regarding employment management and employment regulations such as background check for ride-sharing drivers are being established.
Ⅲ. Major Content - Implications for reforming domestic laws
▶ Related to passenger transportation business centered on public transportation
○ Route passenger car transportation business
- There is room for reference to the UK legislation (Bus Services Act 2017) that made it possible to link between different regions and planned the provision of standardized quality services There is room for reference to buses, free-ride buses, etc.)
- In the case of route abolition, there is room for reference to Japanese legislation (reporting system for route abolition)
- In case of a gap in transportation service, it can be supplemented through operation of the demand-responsive passenger vehicle transportation business
○ Regional passenger vehicle transportation business
- Taxi industry regulations are being relaxed around the world and subsidies are being made, and there is room for reference.
▶ Private mobility service-centered passenger transportation business
○ In Korea, it is judged that the platform business will be operated under a permit system through the regulation of total quantity.
- It is judged that the legal policy that requires that the platform business has business requirements equivalent to the transportation business is reasonable
- It is judged that the legal policy of inducing a gradual transition to a cooperative relationship between the transportation business and the platform business through contributions is reasonable.
- However, in the case of business requirements or contribution-related legal policies, the domestic legal system has already accepted a large part of foreign legislation.
▶ Subsidy support
○ In the case of Korea, financial support for passenger transportation service providers or transportation service users is being implemented.
- Responsible operation can be achieved only when financing and provision are related to the relevant region.
- There is room for reference to German legislative practices (regional matching funds and cross subsidies) in terms of deterring lax management due to fixed financial limits (related to other public goods)
▶ Rights and interests of users of transportation/mobility services
○ In the case of domestic legislation, the rights of transportation service users as consumers are already regulated and guaranteed at a level similar to that of foreign legislation.
▶ Personal information protection and data security·sharing·linkage
○ In the case of domestic legislation, the right to request transmission of personal credit information and the right to respond to automated evaluation were introduced.
- It is meaningful in that it strengthened the rights of the information subject (for MaaS function)
○ Data security sharing linkage
- Standardizing and managing data related to transportation service use (ex. GTFS in the United States, NetTEx in the European Union) needs to be accepted for MaaS efficiency
▶ Insurance and Liability
○ In case of domestic legislation, insurance subscription is designated as one of the platform business requirements.
- Japan's insurance (MaaS insurance of Mitsui Sumitomo Marine & Ionissei Dongwha Non-Life Insurance) in that it adds the added value of reassurance to the convenience of MaaS by reflecting the unique characteristics of the MaaS business and comprehensively compensating for possible damages. available for reference
▶ Anti-trust issues
○ There is room for reference in that Japanese legislative cases (except for the application of the Act on the Anti-monopoly of the Bus Business) provided a legal basis for providing MaaS without violating the Monopoly Act in regions where the use of transportation services is still required even if the demand is low.
▶ New industry support
○ In the case of domestic legislation, legal conditions exist to revitalize new industries, such as the Korean regulatory sandbox system.
- In addition to the legal conditions for revitalizing new industries, it is necessary to prepare a separate law to actively support the practical conditions for MaaS.
- There is room for reference to legislative examples in the United States (MOD, IMI) and Finland (Whim)
Ⅳ. Expected Effects
▶ Promote business based on effective governance model in MaaS implementation
○ It is possible to establish an effective MaaS governance model suitable for the domestic situation by reviewing overseas MaaS governance model application cases such as government-led (Korea, Japan), public-private partnership governance (Finland), and private-led (US) methods.
○ In the case of Korea, it is necessary to promote the project at the initial stage of the government-led initiative, but it is necessary to draw up a plan to apply the governance in stages, such as the spread of local governments based on the public-private cooperation governance model according to the spread of the effect.
▶ Establishment of effective legislative reform direction related to MaaS industry
○ In most countries, regulations for MaaS services are being reflected through amendments to existing laws related to passenger transportation/ mobility rather than special laws for MaaS.
- Examples of the Finnish Passenger Transport Service Act, such as the Mobility Orientation Act of France, the Transport Act of the UK, the TNC regulation of the US, and the Singapore Inter-Point Passenger Transport Act, can be referred to.
▶ Establishing the direction of legal reform related to consumer rights and safety protection according to the emergence of the MaaS industry
○ It is possible to refer to the case of newly establishing business license, safety management obligation, and insurance/responsibility part according to the emergence of a new MaaS/mobility service type.
- Safety management obligations of ride-sharing service providers (UK, France, USA, etc.)
▶ Preparation of legal basis to support new mobility industry
○ You can refer to the legal basis for support measures for new mobility services such as MaaS and ride-sharing services and examples of deregulation.
- Based on the federal government budget for new industries based on the U.S. Public Transportation Innovation Act
- Grounds for subsidizing 50% of the project cost from the central government when building MaaS services in Japan
- Regulatory sandbox system in the United States and Korea, etc.
▶ Establish a legal system for mutual growth between new and existing industries in MaaS implementation
○ With the legalization of Uber in Finland, it is possible to refer to cases such as abolition of the upper limit on taxi approval and relaxation of fare restrictions.