Spain probes Airbnb over unregulated rental offers

Investing.com -- Spain has launched an investigation into Airbnb, the popular home-sharing platform, over its failure to remove thousands of rental listings. The move is part of an attempt to regulate a business that is being blamed for exacerbating housing shortages and escalating real estate prices in the country.

The investigation was announced earlier by Spain's Consumer Rights Ministry, which did not directly name Airbnb. However, the company confirmed on Wednesday that it was the target of the probe. Airbnb also stated that it would file an appeal if found in violation of regulations.

This investigation is part of a broader crackdown in Spain against vacation rentals facilitated by platforms like Airbnb and Booking (NASDAQ:BKNG ).com. Many Spanish citizens argue that these platforms contribute to excessive tourism, deplete housing availability, and drive rental prices to levels unaffordable for local residents.

Since the summer, a department within the Consumer Rights Ministry has ordered Airbnb to remove thousands of listings identified as "illegal advertising," due to their lack of licenses for tourism use, according to a ministry spokesperson.

After Airbnb failed to remove these adverts, a disciplinary process was initiated. The platform now faces a potential penalty of up to 100,000 euros ($104,940.00) or an amount equivalent to four to six times the profit generated from these practices, as stated by the ministry.

In the event of a fine being imposed by the ministry, Airbnb has the option to challenge it in court.

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Source: Investing.com