Paris sues Airbnb for illegal rental listings



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The lawsuit could be expensive for Airbnb. The law allows fines of 12,500 euros per illegal publication, which could leave the company pay nearly 14.2 million dollars if each ad is considered illegal.

In response, Airbnb said Reuters that she had taken steps to ensure that visitors to Paris respect European law, but stated that the Parisian approach was "ineffective, disproportionate and contrary to European rules". That will not accept the allegations, then.

The company may not have much choice but to pay. Paris is the largest Airbnb market, with 65,000 listings, while France is the second most important country. If the company defied the law, it would suffer a serious financial blow and give control of a major tourist destination to competitors such as HomeAway. A fine could be a small price to pay if it continues to move the business.

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