Spain probes Airbnb in crackdown on tourism rentals, ET LegalWorld


Spain has opened an investigation into Airbnb for failing to delete thousands of rental offers from its platform in an attempt to curb a business blamed by authorities and many residents for contributing to housing shortages and soaring real estate prices.

Airbnb said on Wednesday it was the platform targeted by the investigation announced earlier by Spain’s Consumer Rights Ministry, which did not name the company. Airbnb said it would appeal if found in breach of rules.

The probe is part of a general crackdown in Spain on tourism rentals via sites such as Airbnb and Booking.com which many Spaniards say are creating excess tourism, cramping the housing stock and making renting unaffordable for locals.

A Consumer Rights Ministry’s department had since the summer ordered the platform under investigation to remove thousands of listings deemed “illegal advertising” without licences for tourism use, a ministry spokesperson said.

As the adverts were not removed, a disciplinary process began, with the platform facing a potential fine of up to 100,000 euros ($104,940.00) or four to six times the profit made on the practice, the ministry said.

A fine by the ministry can be challenged in court.

Airbnb said it always asks hosts to confirm they have permission to rent their places and abide by all local rules. The company also said that the ministry had failed to provide lists of non-compliant accommodation. Airbnb said many owners do not need a licence to rent out their property.

The company said the ministry did not have the authority to make rulings over short-term rentals and was disregarding certain court rulings, including a European Union Court of Justice ruling in 2019 that Airbnb should be regulated as an “information society service” and not as a real estate agent.

“Airbnb is a platform subject to the Digital Services Act that has no monitoring obligations,” it said.

Spain’s toughest move so far against holiday home renting came from Barcelona’s mayor Jaume Collboni when in June he ordered a total ban on tourism rentals by 2028.

The ban is being challenged in courts by associations representing tourist apartment owners.

Airbnb urged Collboni to reconsider, arguing that the ban only benefits the hotel sector while failing to address excess tourism and the housing crisis.

The Consumer Rights Ministry last week also launched an investigation into agents who handle sometimes hundreds or thousands of platform accounts on behalf of owners.

Other European countries including Italy and Croatia have also taken measures to limit the growth of tourism rentals.

  • Published On Dec 18, 2024 at 11:36 PM IST

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