Crazy taxi rules?

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We in my coutry have what i consider crazy taxi rules, you buy your own taxi and for you to be able to operate you need to pay some huge amounts which again i consider unneecessary. Few days ago i saw this other taxi drivers kicking and chasing a certain poor guy who has just bought himself a taxi, and for the fact that he has not registered to some association and not paid that crazy fee needed. The poor guy has a driver's licence and his taxi is new, but he is denied the opportunity to make a living, infact he has to pay large fees whereas he is in need of money too I am not sure if this kind of rules/laws apply only in my country or not. Do you have this kind of what i would call public scam in your country's taxi industry?