SAN FRANCISCO—In a decision likely to be parsed across the online economy, a federal judge has refused a request by Airbnb Inc. and Homeaway.com Inc. to block a San Francisco ordinance that carries stiff penalties for providing booking services for illegal short-term rentals.
U.S. District Judge James Donato on Tuesday turned back the companies’ argument that the ordinance violates the First Amendment’s free speech protections as well as Section 230 of the Communications Decency Act, which immunizes internet companies from most liability related to user-generated content.
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