France charged Airbnb by $14 Million for illegal adverts

SA TeamFebruary 10, 2019

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Key Highlights

Airbnb sued with $14 Million for publishing 1000 illegal rental adverts.

Airbnb said that rules for short term tourist rentals in Paris are highly bureaucratic and might infringement European Union standards.

France is the second largest business after the USA of Airbnb. It has around 65,000 homes of Paris listed to it.

Mayor Hidalgo of Paris is suing $14 Million from American rental website, Airbnb for publishing 1,000 illegal rental adverts. These charges at Airbnb came into existence because they have violated French Law. Under French law, “Homeowners can rent their places for a short term of 120 days per year and advertisements for rent should have a registration number to ensure properties are not rented for a longer time.”

France has passed a law in 2018 which puts fines of 12,500 Euros per illegal posting on rental companies like Airbnb for violating it. Under this provision, Paris going to chase Airbnb into court. Paris Mayor Anne Hidalgo told the Journal du Dimanche newspaper.

Hidalgo also added this move is done to make unauthorized rentals learn a lesson on how they are spoiling some Parisian neighborhood. Paris municipality analyzed that atleast 1,000 ads posted Airbnb site didn’t abide by the rules. Hidalgo said, “We can’t accept the Airbnb’s and other rental companies don’t respect the law”.

On the favor of France government, several cities around the world have shown concern that platforms such as Airbnb stands as unfair competition to hotels and are turning the neighborhood into Barren, tourist only zone.

On opposition to charges of Paris and implementation of rental rules, Airbnb said that rules for short term tourist rentals in Paris are highly bureaucratic and might infringement European Union standards. Spokesperson of the company also added, “The terms set by city hall are disproportionate, inefficient and against European Regulations”. He also added we hope to be able to work with all concentration players towards appropriate solutions that are suited to French cities.

On looking at Airbnb business France is its second largest business after the USA. Paris one of the largest visited cities of the world is it’s the largest market with around 65,000 homes listed to it. But after new rules business of Airbnb has come in danger in France. Stay connected with us for latest updates!