An option of buying out the licences has been ruled out on the grounds that Palma town hall couldn't afford to.
The federation of transport businesses wants the town hall to either rescind the bylaw or to re-draft it.
For 2017 in Majorca specifically, there will be 32 flags for beaches as well as the fourteen for ports.
It was alleged by the complainants that the town hall had favoured the Valls ice-cream business.
The Council of Majorca's heritage department is seeking a way to preserve the old power station in Alcanada (Alcudia).