Tag: regulatory frameworks

European Court of Justice Rules Against France in Airbnb Case

3 January 2020 – The European Court of Justice has ruled that Airbnb cannot be considered a real estate agency. Therefore, the firm may not be governed under the corresponding regulations. The court determined that the platform should be treated as a data services company since it does not set any rental prices.

The Court added that Airbnb’s activity fell within the scope of the 2000 Directive on e-commerce and ruled that France, which had originally filed the petition, may not require the firm to obtain licensing as a real estate agency.

El Tribunal de Justicia de la Unión Europea ha sentenciado que Airbnb no puede ser considerado una inmobiliaria y, por lo tanto, no puede ser regido según las regulaciones correspondientes. El tribunal determinó que debe tratar la plataforma como una empresa de servicios de datos, ya que no establece ningún precio de alquiler.

El Tribunal agregó que la actividad de Airbnb estaba dentro del alcance de la Directiva 2000 sobre comercio electrónico y dictaminó que Francia, que originalmente había presentado la petición, no puede exigir a la empresa que obtenga una licencia como inmobiliaria.

Original Story: Preferente.com

Translation/Summary: Richard D. Turner

Domo to Give Up Socimi Status After Change in Spanish Rental Law

21 November 2019 – Domo will exit the socimi tax regime and, along with it, its business of developing rental housing due to changes in Spanish regulations. The country approved a law this year where rental agreements would be extended from three to five years, and up to seven years in cases where the owner is a corporate entity.

The firm argued that the change in the law would negatively affect its operations, as its strategy included selling the properties it built within four to six years. Domo added that the new regulations would impact its financing arrangements and decrease its potential profitability.

Nevertheless, Domo expects to maintain its listing on the MAB.

Original Story: La Vanguardia

Adaptation/Translation: Richard D. K. Turner