Curbs on Short-Term Rentals Backed by EU Court in Blow to Airbnb

(Bloomberg) -- The European Union’s top court backed French rules designed to alleviate a shortage of long-term rentals, in a blow to companies that specialize in vacation rentals such as Airbnb Inc.

A French rule requiring Parisians to get permission from local authorities to repeatedly rent out apartments and houses for brief stays is in line with EU laws, the Court of Justice ruled Tuesday.

Paris Mayor Anne Hidalgo described the decision in a tweet as a “victory” that “marks a turning point for the supervision of seasonal rentals and constitutes a step forward for the right to housing for all.”

The ruling is in contrast to a December case where the court struck down a French law that tried to force Airbnb and similar companies to follow stricter rules that apply to real estate agencies.

While Airbnb wasn’t part of this latest case, it said the court’s ruling “will help clarify the rules for hosts who share secondary homes in Paris” and that the company plans to work “closely with local authorities on proportionate regulation that puts local families and communities first and works for all.”

The cases are: C-724/18, Cali Apartments, C-727/18, Procureur general pres la cour d’appel de Paris and ville de Paris.

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