That probably is applicable to street-hailable taxi's AND not at all applicable to pre-arranged livery. Same as in Jersey.
Actually, they are 100% correct.
Reciprocity is the way it's written in the TLC rules.
For example, a licensed fhv out of NJ can legally pick up at JFK or anywhere in NYC, if they are taking the passenger back to its licensed jurisdiction. This is true for a licensed FHV out of CT, Nassau, Suffolk, etc.
Same is true for NYC licensed TLC vehicles. We can pick up at EWR, Nassau, Suffolk, CT, etc but the trip is technically illegal unless the passenger's final stop is in our licensed jurisdiction.
Uber TLC licensed vehicles have gotten ticketed at EWR because the passenger was going to a destination in NJ.
Even though Uber will dispatch us to passengers in these jurisdictions, that doesn't make it legal.
They are just playing the odds that we won't get caught. If we do, they pay the fine since they are making a lot more in the long run.