Airbnb not an estate agent: EU court

Airbnb can’t be regulated like an estate agency that offers its services online, the EU’s top court said in a French case that questioned whether the online platform could be forced to comply with strict local rules.

The EU Court of Justice said in a decision in Luxembourg that French authorities hadn’t properly notified the European Commission about the rules.

In a spat with a French tourism and hotel association trying to force stricter rules on Airbnb, a French court had sought the EU judges’ view on how the online service provider has to be treated under the EU’s e-commerce rules.

The ruling is in contrast with a separate case concerning Uber Technologies, where the EU top court ruled that the online car-sharing service has to be regulated like a taxi service.

An adviser to the EU court said in a non-binding opinion in April that Airbnb is different and can’t be treated like a normal real estate agent.

The court decision is a win for Airbnb as it tries to resolve regulatory issues with cities in advance of its stock market listing next year.

Airbnb said that the court decision will allow it to “move forward and continue working with cities on clear rules”.

“We want to be good partners to everyone and already we have worked with more than 500 governments to help hosts share their homes, follow the rules, and pay tax,” the San Francisco-based company said in a statement.

Specifically, they wanted to know whether a French law, called Hoguet, which regulates the real estate profession in France and can lead to criminal sanctions for any violations, can be imposed on Airbnb Ireland.

But the hotel group also said the ruling was positive because it merely focused on a procedural issue.

“Eventually Airbnb is going to be regulated in France, just not as a real estate agent at this point,” said Quentin Michelon, an official at the French hotel group.

- Bloomberg