Case C-390/18, Airbnb Ireland [19.12.2019]

Language : English

Date of the decision: 19 December 2020

Country: Ireland

Jurisdiction: Court of Justice of the European Union

Preliminary ruling

Article 2(a) of Directive 2000/31/EC on certain legal aspects of information society services, in particular electronic commerce, in the Internal Market (‘Directive on electronic commerce’)

Article 1(1)(b) of Directive (EU) 2015/1535 laying down a procedure for the provision of information in the field of technical regulations and of rules on Information Society services

Subject: Housing affordability and short stay accommodation

In a context of high tourist flows in European cities and a growing debate on the impact of short term rental platforms on the affordability of housing, many homes previously available in the private rental market are now being rented to tourists through different platforms, such as Airbnb, Home Away and others.  Tourist rental is said to be increasing the price of rentals in cities and local governments are forced to somehow regulate this activity. One of the key issues in this field deals with the conformity of these local regulations with EU law.

In this case the CJEU was asked whether, as Airbnb does not only establish contact between hosts and potential guests, but also provides a range of other services, it should be considered as a traditional real estate agent and therefore hold a professional licence in accordance with French law. The CJEU held that, under EU law, Airbnb should be considered a digital information provider rather than a traditional real estate agent[1]. The services provided in France by Airbnb benefit from the freedom to provide services laid down by the Directive on electronic commerce and France cannot require Airbnb to hold an estate agent’s professional license as it did not notify the Commission of that requirement in accordance with Directive.

Some European cities reacted strongly to the decision requesting the EU to adopt new legislation which allows them to regulate these platforms[2], because they consider the Directive on electronic commerce, which dates from 2000, is no longer adapted to the actual needs to stablish limitations.