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.