The city's expensive black cabs benefit from a rule that allows them to move around quickly by using lanes set aside for buses. Rivals, such as Uber cars or cheaper taxis known as minicabs, are banned from the lanes.
That rule was challenged by private taxi firm Addison Lee, which has long argued that it amounted to unfair state support.
But a European Union court sided with black cab drivers in a ruling, dismissing arguments that the bus lane policy violated European competition laws.
"Drivers of black cabs are subject to strict standards in relation to their vehicles, their fares and their knowledge of London, whereas those standards do not apply to minicabs," the ruling said.
Transport for London, the authority overseeing public transport in the city, has argued that allowing tens of thousands of minicabs to drive in bus lanes would impact the reliability of bus services.
Unlike their rivals, black cab drivers are self-employed, and most own their vehicle. Many cabbies take pride in their knowledge of London's streets all cabbies must pass a test called "the Knowledge" and most say that drivers from rival firms are not as professional.
Addison Lee can still appeal today's ruling in British courts.
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