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Airbnb fights back after onerous New York bill signed into law

Airbnb is not happy with the state of New York and on Friday afternoon filed a federal lawsuit just hours after a New York law was signed that would impose fines up to US$7,500 on its hosts who break local housing regulations and rent out a whole apartment for fewer than 30 days.

This legislation is especially burdensome to Airbnb as New York City’s hosts generated about US$1 billion in revenue last year.

Airbnb’s suit contends that the law violates the company’s constitutional rights to free speech and due process, as well as its protection afforded under the Communications Decency Act, a federal law that says websites cannot be held accountable for content published by their users.

The new law “would impose significant immediate burdens and irreparable harm on Airbnb,” the company said in its complaint. “In order to be assured of avoiding liability, including potential criminal prosecution, Airbnb would be required to screen and review every listing a host seeks to publish.”

New York lawmakers said that they had the Communications Decency Act in mind when they drafted the bill, which is why it holds the hosts responsible for advertising illegal listings and does not impose any fines on Airbnb.

“New York is taking a bold step that will hopefully set a standard for the rest of the country and other countries in the world that are struggling with the impact of Airbnb on affordable housing,” said Assemblywoman Linda Rosenthal, a Manhattan Democrat who sponsored the bill.

This suit adds to filings by Airbnb in its hometown San Francisco and in Santa Monica, California, which have both moved to fine the company for illegal listings. The company is also fighting battles in Amsterdam and Barcelona, which penalizes hosts who list illegal rentals, and in Berlin, which has banned most short-term rentals.

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