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Airbnb loses major fight over California city’s rental law


The courts’ interpretation of the 1996 law and the protection it affords interactive online businesses has become a central theme in legal challenges to Airbnb and its rivals. — Bloomberg

The courts’ interpretation of the 1996 law and the protection it affords interactive online businesses has become a central theme in legal challenges to Airbnb and its rivals. — Bloomberg

Airbnb Inc and Expedia Group Inc’s HomeAway failed to persuade a US court of appeals to strike down a Santa Monica law that makes the companies liable for illicit rentals in the Southern California beach city. 

The ruling March 13 by a three-judge panel of the Ninth Circuit is a setback for the home-sharing platforms in their effort to avoid regulation by cities that blame the rapid proliferation of short-term rentals for a shortage of affordable housing and a disintegration of residential communities. 

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