A federal appeals court says Uber and taxis are not the same type of service, and, hence, it’s OK to regulate them differently. In a blow to taxi drivers, the decision means cities like Chicago can have separate regulations for Uber and taxis—with the more onerous ones targeting cabbies.

The US 7th Circuit Court of Appeals said drivers like Lyft and Uber don’t have to have their fares regulated or their drivers licensed. In a federal lawsuit, cabbies said the different treatment is an illegal double standard, discriminatory, anti-competitive, and is forcing them out of business.

“The plaintiffs continue to receive some insulation from competition, because they alone are permitted to operate taxicabs in Chicago. Taxicabs are preferred to Uber and other TNPs (transportation network providers) by many riders, because you don’t have to use an app to summon them—you just wave at one that drives toward you on the street—and also because the fares are fixed by the City,” the court ruled.