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Paris sues Airbnb over illegal rental ads

Litigation can prove expensive for Airbnb. The law allows fines of EUR 12 500 per illegal posting, which could cause the company to pay nearly $ 14.2 million if each ad is considered illegal.

In response, Airbnb gave Reuters that it had taken steps to secure visitors Paris respects European law, but claimed that the Parisian approach was "ineffective, disproportionate and contrary to European rules." It will not accept the claims, then.

The company may not have much choice but to pay out. Paris is Australia's largest market, with 65,000 entries, while France is the second most important country. If the company believed the law, it would have a serious financial blow and would control a major tourist destination for its competitors like HomeAway. A fine can be a small price to pay if it keeps business humming.

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