Rental and sharing giants HomeAway and Airbnb have each been slapped with a USD 635,000 fine over alleged permit issues in the city of Barcelona.
Administrators in the Spanish city say the pair have flouted regulations for advertising tourist accommodation that have not been authorised to host tourists on their properties.
This is a repeated offence dating back to December last year, Barcelona city hall says.
Expedia Inc-owned HomeAway says it “regrets the disproportionate reaction” of city officials in Barcelona and argues that the fine is contrary to European legislation created to invigorate “normal development of the ecommerce and the holiday rentals platforms”.
The company says it, alongside reserving the right to appeal the fine, is working with homeowners on the issue.
Airbnb says it is “saddened” by the decision to impose a fine on the company and that it will appeal the ruling.
An official adds: “Airbnb is part of the solution in Barcelona. We want to be good partners to cities and we will keep proactively seeking collaboration with Barcelona to maintain this dialogue and support regular people who share their homes.”
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