Paris sues Airbnb for illegal listings

Paris is one of the most popular destinations for Airbnb, but city authorities disagree with the company.

The mayor of Paris, Anne Hidalgo, announced Sunday that the city would sue Airbnb for $ 14 million, because of the alleged list of 1,000 illegal rentals.

Hidalgo made the announcement in a French newspaper The Sunday Diary, and said do not contradict the Parisians who rent their house "a few days a year", but those who treat it as a business.

"The problem is the multi-owners who rent all year round apartments to tourists without declaring them, and platforms, their accomplices, who welcome them," she said.

French law prohibits homeowners from renting their properties for more than 120 days a year in certain cities, such as Lille, Lyon and Paris.

The law was pbaded as a result of criticism by short-term rental sites such as Airbnb, which have contributed to rising housing prices and housing shortages.

Hidalgo said the authorities could potentially impose a fine of 12,500 euros ($ 14,240) on each illegal property. Owners are required to register their Airbnb properties with local authorities and to post the registration number in the list.

Whatever the fine, it could be a water drop in the ocean for Airbnb, which recorded in the third quarter of 2018 a turnover of more than $ 1 billion and should be profitable for the second year in a row.

Airbnb has been contacted for a comment.