Airbnb Fined $9.6 Million in Paris for Illegal Listings

Airbnb Fined by Paris Court for Regulatory Non-Compliance

A Parisian court has levied a substantial fine against Airbnb, the widely-used platform for short-term vacation rentals. The ruling stems from the company’s alleged failure to adhere to local regulations concerning apartment listings.

Details of the Fine

Airbnb is required to remit a payment of $9.6 million (€8.08 million) to the city of Paris as a result of the court’s decision. This penalty reflects ongoing concerns about the platform’s impact on the Parisian housing landscape.

Years-Long Dispute and Housing Market Impact

The legal proceedings have been developing for several years. The proliferation of Airbnb listings has demonstrably affected the housing market in Paris, similar to trends observed in other global cities.

A significant number of apartments were removed from the long-term rental market as owners opted to utilize them as full-time Airbnb rentals, contributing to increased rental costs.

Regulations Introduced in 2017

In 2017, Paris implemented regulations designed to curb the impact of short-term rentals. These rules included a restriction limiting rentals to a maximum of 120 nights per year.

The intention was to discourage landlords from prioritizing short-term Airbnb income over long-term tenants.

Registration System for Vacation Rentals

Recognizing the presence of multiple vacation rental platforms, the city of Paris established a mandatory registration system. Owners wishing to list their properties on platforms like Airbnb were required to obtain a registration number.

Airbnb and similar platforms were then obligated to request this registration number from hosts and enforce the 120-night annual limit.

Initial Findings and Legal Action

The mayor’s office initially identified approximately 1,000 apartments that were listed without proper registration. This list was subsequently provided to Airbnb, with a request to remove the non-compliant listings.

Further action was taken in 2019 when the city of Paris initiated a lawsuit against Airbnb, citing continued non-compliance with the regulations.

Shared Responsibility and Today’s Outcome

Regulatory adjustments clarified that responsibility for compliance was shared between both the property hosts and the Airbnb platform itself. This ultimately led to the current financial penalty.

Statements from Officials

“This is the first time in France that a local government wins a case against a tech giant,” stated Paris Deputy Mayor Ian Brossat. “Platforms are finally held accountable. A wonderful win for Parisians.”

Airbnb’s Response

Airbnb reported to AFP that 95% of listings in Paris were booked for fewer than 120 nights in the preceding year. However, the company acknowledged that the remaining 5% of listings accounted for a disproportionately large share of total nights booked.

This suggests a concentration of full-time rental activity within a small subset of listings.