Spain: CNMC warns Canary Islands government over housing rules

Spanish regulators notified the Government of the Canary Islands of their objections against several articles of a decree, issue in May this year, which approves a new set of Regulations for vacation homes in the community. The notification is a preliminary step which seeks to avoid a formal indictment of the rules, should the local government refuse to modify or eliminate the offending restrictions.

The decree introduces a new set of rules for vacation homes in the Canary Islands Autonomous Community. These homes had been considered a Non-regulated accommodation market, lacking any specific rules.

The CNMC’s analysis of the regulations has identified several obstacles to efficient market competition. “ All these measures raise, without justification, the cost of entry to this market, discouraging some existing operators trying out new service models as well as new potential participants” said the commission. This would reduce the number of competitors, removing incentives for more efficient and competitive prices.

Source: El País

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.