Regardless of whether the laws as written are correct (I would argue that the very existence of a "medallion" that costs more than the filing fee is evidence of collusion between the taxi authority and the taxi's)
In Paris the taxi medallions are free but there is a 15 to 18 years waiting list. So most drivers either get their medallion on the secondary market where the price was multiplied by about 20 in the past 25 years, reaching about 250 000 €. This financial pressure may be at the root of a lot of misbehaviors like refusing short rides, refusing credit cards (cash makes cheating the IRS easier), refusing to load passenger within a quarter mile from a train station (they can charge more at the train station), etc. There were 12 500 taxis in 1956 and they are now 19 500 (a 0.78%/year increase). There should be more but, besides the obvious lobbying (which I guess you could call collusion), every time the government wants to do so the taxis go on strike and block all traffic like last week (extortion). Some say the government should promise to buy back existing medallions but besides not making very much sense, that would cost well over 4 billions euros. Just for Paris!
So neither side is clean. At all.