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Canada’s Competition Bureau has weighed in on the battle between digital taxi services such as Uber and municipalities which have pushed to shut them down, saying “these innovative applications benefit consumers in the form of greater convenience and better service.”

“Municipalities should consider whether prohibitions on digital dispatch services and ridesharing applications are necessary and explore whether less restrictive regulations could adequately address their concerns,” it said in commentary published on its website Tuesday.

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This comes roughly a week after Toronto became the latest major city to challenge Uber Technologies Inc.’s legality and asked for a court injunction to shut down the ride service for its “flagrant disregard” of its licensing requirements.