Sweden is a country with a deregulated taxi industry. The only regulation remaining is a requirement of a commercial taxi driving license (which is an only slightly more rigorous test), and consumer protections such as requiring an approved taximeter installed and having pricing comparison information posted in the window in a standardized format.
The Swedish taxi market is not flooded, prices are not dumped, there aren't traffic jams. The major complaints are about tourists getting scammed by overpriced taxis (where the prices are legitimately posted in the window as super expensive) since they aren't prepared to have to compare pricing between taxis since everywhere else prices are regulated.