If you want fair competition, you have to do it under the same rules as everyone else.
And fair rules would be that any driver that meets some objective criteria relevant to driving (vehicle inspection, insurance, licensure, ...) can operate a taxi and obey the same rules. Unfair rules would be something like "the first 1000 people to sign up" can operate a taxi and everyone else can sod off.
Not every rule or regulation is an evil plot to suppress the entrepreneurial spirit.
Not every rule or regulation is justified in protecting consumers or the public.
In this case, the consumer-protection part of the laws are undoubtedly the former while the arbitrary limitations on the number of licenses seem very likely to be the latter.
This has nothing to do with fair competition, or protecting entrenched players. This is about governments having the authority to pass laws, and whiny idiots claiming they don't want laws.
Of course they have authority to pass laws. And people have the right to complain when the laws go beyond protecting consumers into protecting a racket. Not every law is foolish or an imposition or liberty but as the same time some are giveaways to special interests.