Airbnb are suing New York City over a new rule regarding short-term rentals.
The lawsuit, filed on Thursday, alleges that the city imposes arbitrary restrictions that would greatly reduce the local supply of short-term rentals.
The 2022 ordinance, which the city plans to begin enforcing next month, would require owners to register with the mayor’s office, disclose who else lives on the property, and promise to comply with zoning, construction and maintenance regulations.
Airbnb called the restrictions “extreme and oppressive” and a de facto ban against short-term rentals that left the company no choice but to sue.
San Francisco-based Airbnb filed the lawsuit in state court in Manhattan. Three Airbnb hosts filed a companion lawsuit against the city.
The New York restrictions are among many efforts by local communities to regulate short-term rentals without banning them.
The city, which plans to enforce the law in July, said it is reviewing the lawsuit.
The conflict highlights the tension between tourism and housing concerns in New York City.
While Airbnb sees the platform as important to the city's tourism industry and residents' income, critics argue that many listings function as "illegal hotels" exacerbating the housing shortage, according to the New York Times.
The lawsuit also raises questions about the broader debate surrounding Section 230 of the Communications Decency Act, which provides protections for tech companies.
Airbnb and the city have a history of litigation, with this not being their first legal dispute.
In a previous lawsuit that was settled in 2020, Airbnb sued the city in response to their attempt to compel the company and other platforms to disclose additional data regarding hosts.
Other cities, such as Santa Monica, Boston, and San Francisco, have implemented registration schemes with success in reducing listings.
The outcome of the lawsuit and potential legal challenges may impact the regulation of online platforms in New York City and beyond.
