Companies such as Uber of the US and French rivals SnapCar and Allocab appealed to the State Council to overturn the decree. They have grown swiftly recently under the category of "tourist cars with chauffeurs", or VTCs, created by the previous centre-right government to offer competition to street licensed taxis.
The VTCs say France has a big shortage of taxi services compared, for example, with the UK. There are only 55,000 licensed taxis in France, including close to 20,000 in Paris. The number of VTCs has grown to 12,400 countrywide – but that compares with about 40,000 "minicabs" in London alone.
The State Council said it would now consider whether to order a permanent lifting of the decree.
Last month, thousands of street licensed cabs jammed roads around Paris and other cities in protest at what they say is unfair competition from VTCs. Uber drivers and customers were physically attacked during the protest.
(Read more: Could 2014 be the year France reforms for real?)
The traditional cab drivers complain that they have to pay up to €200,000 to acquire one of the restricted number of street taxi licences, while car owners pay a fraction of that for a VTC licence. The government is hesitant to issue more on-street licences because many taxi drivers rely on selling their licence to fund their retirement.
Yves Weisselberger, a founder of SnapCar, said he was delighted by the council decision. "The council has simply ruled that the (taxi) reservation market should be able to compete freely," he said.
Government officials said they would study the ruling before deciding how to react.
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