Regulating short-term rentals: Joined cases C-724/18 and C-727/18 Cali Apartments

Abstract

The increase in short-term rentals via online platforms has captured the attention of scholars and regulators. Short-term letting is now considered a considerable alternative to traditional tourist accommodation contracts, challenging matters such as conditions in the housing market and consumer protection. Online platforms, such as Airbnb, Booking.com , Expedia and Tripadvisor, now provide offers for short-term accommodation contracts along with traditional accommodation options (hotels, hostels, apartments). The recent decision of the European Court of Justice in Joined cases C-724/18 and C-727/18 addresses for the first time the issue of regulation of short-term rentals in Member States and evaluates a national authorization scheme in light of the Services Directive. The present paper provides a brief background of European regulation affecting short-term rentals and discusses the judgment and its implications for future developments.