EU Court Says Airbnb Should Not Be Subject to Stricter Rules in Europe
A European Court of Justice adviser said Airbnb should be treated as a digital service provider and therefore the more onerous regulations governing real estate agents do not apply
April 30, 2019 at 01:21 PM
3 minute read
Airbnb Inc. should not be subject to the same regulations as real estate agents and instead should be treated as a digital service provider, free to operate across the European Union, an adviser to the European Union's highest court said on Tuesday.
The opinion, issued by one of the European Court of Justice's advocates general, Maciej Szpunar, increases the likelihood that the full court will rule that Airbnb should not be subject to the same rules as real-estate agents. Advocate general opinions are not binding on the court but are followed in more than 70 percent of cases.
The finding followed a complaint brought in a French court against Airbnb Ireland, which runs the company's platform for all operations outside the U.S., by a French hotel chain and tourism association. The association argued that Airbnb infringed French law by failing to meet requirements that apply to real-estate agents.
The French court referred the case to the European Court of Justice for a ruling on whether Airbnb's activities fell under EU law on information society services.
The advocate general found that Airbnb should be treated as an internet service because the service is provided entirely via electronic means and does not exercise control over the provision of those services. Rather, Airbnb is an online service that connects potential guests with hosts who offer short-term accommodation, he said.
He also said the French Government had not properly notified the European Commission and the authorities in Ireland of its intention to apply French law to the company. It is unclear what the opinion would have been had the French authorities made the required notification.
Airbnb welcomed the opinion, saying in a statement that it "provides a clear overview of what rules apply to collaborative economy platforms like Airbnb and how these rules help create opportunities for consumers".
The opinion contrasts with a ruling from the European Court of Justice issued in December 2017, which found that Uber should fall under the same regulatory framework as taxi companies because it is a transport services company rather than an information services company.
Airbnb has been facing stricter rules across the EU amid criticism that it is fuelling a shortage of affordable rental properties. Paris, Amsterdam, Dublin and other European cities have imposed limits on the maximum number of nights properties can be rented on Airbnb, to deter owners from seeking longer tenancies rather than short-term rentals.
But Airbnb will likely benefit a great deal from the ruling – especially in Europe. France is Airbnb's largest market after the U.S., and Paris is its biggest single-city market. The company has been under fire around the world, with many cities claiming its services are having a negative impact on neighbourhoods and need more regulation.
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