Updated

Brazil's lower house of Congress has approved a bill that regulates ride-hailing company Uber and other transportation apps, letting them operate if they get authorization from municipal governments.

The bill was approved Tuesday and now goes to the Senate. It gives city governments the right to charge taxes and require insurance for passengers and pension benefits for drivers.

The new legislation could increase costs for the ride-sharing companies and their passengers in Brazil.

Brazilian cab drivers have complained that Uber and similar companies are unfair competition because their drivers don't have to pay city fees or undergo official inspections.