Airbnb Is Not Subject to Real Estate Agent Rules, EU Top Court Says
The court said Thursday that Airbnb is not required to hold a real estate licence because the French government had not informed the European Commission that such a permit was needed under EU law.
December 19, 2019 at 02:13 PM
2 minute read
The original version of this story was published on Law.com
In a victory for Airbnb, the EU's Court of Justice has ruled that France cannot require the company to hold an estate agent's licence.
The court said on Thursday that France was not entitled to expect the company to hold a licence because the French government had not informed the European Commission that such a permit was needed under EU law.
The ruling, by the EU's highest court, stemmed from a complaint brought by the French association for professional tourism and accommodation (AHTOP) against Airbnb Ireland.
AHTOP had argued that the company was acting as an estate agent and should therefore be subject to the same licensing requirements as estate agents operating in France. AHTOP said the company was not simply bringing together people looking for accommodation and providers of accommodation, but was acting as an estate agent because it offered a service to providers of accommodation to help them market their properties.
The court found that Airbnb was acting as an intermediary service as defined by the EU's e-commerce directive. Under that directive, national governments need to inform the Commission about any legislation restricting the rights of companies to offer internet-based services. As France had not done this, it was incompatible with the EU's e-commerce legislation to require Airbnb to obtain an estate agent's licence.
In a statement, Airbnb France said, "We welcome this ruling and we will continue to work with cities on clear rules."
Paris officials have been at odds with Airbnb for several years, blaming it for the increase in rents in the city. Last year, Paris city hall said there were about 60,000 Airbnb listings in Paris.
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