Paris sues Airbnb over illegal rental ads
Engadget - Mon 11 Feb 00:55 GMT

Paris sues Airbnb over illegal rental ads

Paris is suing Airbnb over claims 1,000 rentals violate a law that prevents owners from turning homes into hotels.

  The lawsuit could prove expensive for Airbnb.

  The law permits fines of 12,500 euros per illegal posting, which could leave the company paying nearly $14.2 million if every ad is deemed illegal.

  In response, Airbnb told Reuters that it had taken steps to ensure visitors to Paris honor European law, but claimed the Parisian approach was "inefficient, disproportionate and in contravention of European rules."

  Paris is Airbnb's single largest market, with 65,000 listings, while France is its second most important country.

  If the company defied the law, it would suffer a serious financial blow and would cede control of a major tourist destination to competitors like HomeAway.