Spain Cracks Down on Airbnb: Housing Crisis Sparks Investigation

Spain's Consumer Rights Ministry has launched an investigation into Airbnb for failing to remove rentals lacking proper licenses. This move is part of a broader effort to control tourism rentals blamed for housing shortages and price hikes. The platform faces potential fines and legal challenges.

Spain has stepped up its efforts to address housing shortages linked to tourism rentals by opening an investigation into Airbnb. The Consumer Rights Ministry aims to tackle thousands of listings that allegedly lack the proper licenses for rental use, a key factor in the surging real estate prices.

Airbnb has confirmed its involvement in the investigation, which aligns with a broader crackdown targeting online platforms like Airbnb and Booking.com for contributing to an oversaturated tourism market. Concerns voiced by Spaniards highlight the difficulties locals face due to increased rental costs.

The investigation carries significant repercussions for Airbnb, including potential fines up to 100,000 euros. The company's defense rests on regulatory oversight gaps and legal interpretations, including the EU Court of Justice's classification of Airbnb as an 'information society service'.

(With inputs from agencies.)