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Spain: Airbnb and crew find backers in CNMC

By  |  May 30, 2017

Owners of tourist-oriented apartments in Spain, and companies like Airbnb or Homeaway, have found in the National Commission of Markets and Competition (CNMC) a new ally in their encroachment on the hotel sector – The Commission has sued the governments of Madrid and the Canary Islands before their respective Superior Courts of Justice for hindering, through different decrees, the rental of tourist accommodation.

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    The first rule that the CNMC appealed was a decree by the Community of Madrid, which imposed a minimum of 5 nights for a tourist to rent a short-lease accommodation. The Superior Court of Justice for the Madrid region annulled several key aspects of the decree. This appeal was followed by an appeal against mandatory standards on holiday homes approved by the Government of the Canary Islands.

    The arguments put forward by the Commission in both cases are similar. Firstly, for creating obstacles to the development of the holiday rental business, with temporary rental bans on geographical areas where these houses could not be advertised. Second, for effectively favoring the business of incumbent operators, that is, hotels, compared to tourist apartments. And, third, over undue restriction of competition.

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