To address what the government sees as excessive competition in the industry, the Diet enacted a law Wednesday to force taxi operators to reduce their fleets in certain markets and end discount fares.
New entries into the market and fleet expansions by existing operators will be banned. The government will be empowered to issue recommendations or orders to carriers that do not comply.
The government says the measure is intended to improve working conditions for drivers and improve safety, but some operators have expressed opposition to increased regulations, saying they go against the government's deregulation drive.