Preliminary Decision by the STF in ADI 7.852 Indicates That State Legislation Creates “Excessive Obstacle” and Invades Federal Competence.
The STF (Supreme Federal Court) provisionally suspended the effectiveness of Law 18.156/2025, from the state of São Paulo, which established new rules for the paid individual passenger transportation service by motorcycle, popularly known as mototaxi. The decision, issued by Minister Alexandre de Moraes within the scope of Direct Action of Unconstitutionality (ADI) 7.852, responds to a request from the National Confederation of Services (CNS).
The entity argued that the São Paulo law invades the Union’s exclusive competence to legislate on traffic and transportation. According to information from the Legal Consultant portal, the suspended legislation conditioned the provision of service to authorization and specific regulation by municipalities. The reporting minister understood that, in practice, the rule creates a “excessive obstacle” to the exercise of the profession, contravening constitutional principles and establishing rules incompatible with federal legislation.
The Invasion of Federal Competence
The main thesis accepted by Minister Alexandre de Moraes, which was raised by both CNS and the Attorney General’s Office (AGU) and the Federal Public Prosecutor’s Office (PGR), is that of usurpation of competence. The Federal Constitution defines that it is exclusively the Union’s role to legislate on traffic and transportation, allowing states only a supplementary competence, which, according to the decision, was not the case with the São Paulo law.
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The São Paulo norm, by creating its own requirements, such as the need for specific municipal authorization for mototaxi drivers, directly interferes with the federal model. According to the Legal Consultant, the STF decision highlights that the state law allowed municipalities to control the supply of app-based transportation and regulate the service in a manner incompatible with existing federal legislation, such as the National Urban Mobility Policy.
Free Initiative and the Precedent of Theme 967
In addition to the issue of legislative competence, the STF’s decision was strongly based on the violation of the principles of free initiative and free competition. Minister Moraes recalled what was established by the Supreme Court itself in Theme 967 of general repercussion. This precedent ruled unconstitutional any type of prohibition or restriction on transportation by app drivers.
Although the São Paulo law did not explicitly prohibit the mototaxi service, the minister considered that it created “criteria and requirements not provided for in federal law that difficult its exercise”. In practice, the STF understands that classifying individual private transportation via app as an economic activity (and not a public service) prevents the state from creating barriers that, in practice, act as a concealed prohibition or excessive discouragement of the activity.
The Arguments of São Paulo and the Risk of ‘Cascade Effect’
During the ADI 7.852 process, the Legislative Assembly of the State of São Paulo (Alesp) and the State Government defended the validity of the norm. As reported by the Legal Consultant, the state entities argued that the law dealt with consumer and health protection, topics for which the state would have the competence to supplement federal legislation.
These arguments, however, were not sufficient to keep the law in force. Minister Alexandre de Moraes justified the urgency of the suspension (provisional) pointing not only to the “excessive obstacle to professional exercise” of the mototaxi drivers, but also to the risk of a “cascade effect”. There was an imminent danger that other states would feel authorized to implement similar regulations, generating legal uncertainty and invading the Union’s competence throughout the country. The suspension remains in effect until the final decision of the STF plenary.
The STF decision directly impacts the daily lives of thousands of mototaxi drivers and users in São Paulo, reopening the debate on who should regulate apps. Do you agree with the suspension of the São Paulo law? Do you believe that regulation should be exclusively federal or should municipalities have more autonomy? Leave your opinion in the comments; we want to hear from those who live this in practice.

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