Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Online service or property agent? EU court to define Airbnb's status

Published 12/18/2019, 06:12 PM
Updated 12/18/2019, 06:16 PM
Online service or property agent? EU court to define Airbnb's status

By Foo Yun Chee

LUXEMBOURG (Reuters) - U.S. homesharing site Airbnb will get a better idea of how it should be labeled when Europe's top court rules on Thursday on the tricky question of whether it is an online booking service or a real estate agent subject to onerous rules.

The question arose following a complaint by French tourism association AHTOP, underlining the clash between lightly-regulated online platforms competing with bricks-and-mortar rivals.

The ruling by the Court of Justice of the European Union (CJEU) could have far-reaching consequences, particularly as Paris will host the Olympics in 2024 and the IOC has agreed to promote Airbnb for accommodation during the event.

Airbnb has in recent years run up against hoteliers and authorities in cities from New York to Amsterdam, Berlin and Paris, who accused the company of worsening housing shortages and pushing out lower income residents.

Airbnb won backing from a CJEU court adviser in April, who in a non-binding opinion said the company should be treated as a digital service provider and free to operate in the bloc. Judges follow such advice in the majority of cases.

Airbnb has already fended off several challenges by AHTOP in France. It has previously said that the 50-year real estate law does not apply to an internet platform, and that it is working with governments to help diversify tourism and protect housing.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.