Hoteliers take Airbnb to court for “unfair competition” and demand 9.2 million euros

Hoteliers take Airbnb to court for “unfair competition” and demand 9.2 million euros
Hoteliers take Airbnb to court for “unfair competition” and demand 9.2 million euros

War is declared between hotel professionals and Airbnb. Around twenty hoteliers supported by Umih, the sector’s leading employers’ union, took the online accommodation rental platform to court for “unfair competition”, demanding 9.2 million euros in compensation. The summons before the Lisieux commercial court was notified to the company Airbnb Ireland, established in Dublin and the group’s European headquarters, this Thursday, June 20, announced their lawyer Jonathan Bellaïche, of the Goldwin law firm. The hearing is scheduled for September 6.

The 26 hotels participating in the action are located in 15 departments and are of “all types”, with both independent hotels and those affiliated with groups (Ibis, Best Western, Kyriad), according to the list presented by Umih during a press conference.

The union supports this action, but did not join it, having initiated another complaint for unfair competition against Airbnb with the Paris commercial court, with a hearing scheduled for September 13.

Sometimes illegal ads

Hoteliers criticize the platform in particular for not respecting its obligations such as mentioning the registration number on certain advertisements in municipalities where it is obligatory, a bailiff having noted the absence of registration number on advertisements in Kaysersberg in Alsace and Cannes.

They also believe that the platform “does not delete advertisements older than 120 days for main residences, does not collect, does not declare or pay tourist tax”.

For Me Bellaïche, Airbnb having been recognized as a content publisher (decision of the Paris Court of Appeal in January 2023), “the platform has an obligation of vigilance regarding the legality of the advertisements published”. “We know that many people rent their apartment without authorization”, by subletting or by not respecting the regulations on change of use, according to which compensation measures are requested in certain cities, maintains Me Bellaïche.

Airbnb brought in 187 million euros to municipalities

“This subpoena is part of a long series of unsuccessful actions brought in recent years by hotel lobbies,” Airbnb responded in a statement sent to AFP. “While this hotel lobby strives to defend arguments contrary to French and European rights, Airbnb has allowed many families to earn around 3,800 euros on average, and municipalities to collect 187 million euros in tourist tax, on the year 2023 alone”, indicates the platform which ensures that it complies with all its obligations.

“If it turns out that this new legal action harms Airbnb’s business or the ability of French hosts to rent their property, we will consider all options, including legal, to protect these rights,” continues -She. Me Bellaïche, who relies on previous convictions of the platform to assert the damages, also ordered Airbnb to produce the property titles of certain accommodation advertisements located around hotels participating in the summons.

“If they do not ask for the title deeds, that makes them co-responsible for the hosts’ failings,” believes the lawyer.

Housing shortage in France

“In Nice, we found 3,673 unauthorized advertisements, without registration numbers,” assures Eric Abihssira, operator of a hotel in Nice and participant in the action. With the increase in Airbnb rentals around him, this hotelier believes that “it’s as if I had a 60-room hotel around me that competes with me without the same obligations.” “We are not calling into question the platform economy, nor the right of people to rent their homes,” however, maintains Jonathan Bellaïche. “We are calling into question unfair competition,” he argues, indicating that the platforms are also partners and that hoteliers use Airbnb or Booking.

The summons comes at a time when a law on furnished tourist accommodation, eagerly awaited by the profession because it was to further regulate the sector and rebalance taxation, is on hold due to the dissolution of the National Assembly.

On the law, “we should be able to start from the same point”, hopes Véronique Siegel, president of the hotel branch of Umih, noting the urgency of this issue which must respond to the problem of housing shortages in France, overtourism and housing for seasonal workers.

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