Cities should reconsider moves to ban mobile-taxi applications, which include Uber Technologies Inc., as they’re good for consumers, Canada’s Competition Bureau said.

“Municipalities should consider whether prohibitions on digital-dispatch services and ridesharing applications are necessary,” the agency said in a release from Ottawa today. New taxi technology can offer riders lower prices, convenience and better service, said the bureau, an independent federal agency.

Toronto, which asked a court last week to ban Uber, may be limiting options for consumers, the Competition Bureau said. The agency said it’s received “numerous complaints” about the traditional taxi industry, including on wait times, high prices and drivers who say they have trouble getting plates needed to operate a cab.

Uber, which allows users to summon and pay for rides with their mobile phones, has been facing legal battles in countries around the world including Germany amid complaints about unfair competition, lack of customer safety to increased road congestion.

The Competition Bureau also made submissions to Toronto’s taxicab industry review in February saying any taxi regulation should support new entrants.

To contact the reporter on this story: Katia Dmitrieva in Toronto at edmitrieva1@bloomberg.net To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net Jacqueline Thorpe, Cecile Daurat.

Tags: apps, canada, uber
Photo Credit: A taxi drives down Bay Street in Toronto, which asked a court last week to ban Uber. The City of Toronto / Flickr