French hotels sue Airbnb for unfair trade practices

More than two dozen French hotels have launched a lawsuit against the short-term rental platform Airbnb for unfair trade practices and are seeking nearly $10 million in damages, their lawyer said Thursday.

The case, brought by a range of independent hotels and members of large chains, alleges that the US-based platform does not collect or pay tourist taxes and fails to take down ads that don't comply with regulations on renting out homes, said lawyer Jonathan Bellaiche.

"We know that many people rent out their apartments without authorisation," he said.

Short-term vacation rental platforms have caused consternation in many cities for taking away business from hotels and reducing the number of apartments available for long-term rental to residents, prompting a number to introduce regulations.

Airbnb retorted that it adheres to all regulations and it had paid 187 million euros ($200 million) in tourist tax to cities last year.

"If this new legal action hinders the activity of Airbnb or the capacity of our French hosts to rent their property we will consider all options, including taking legal action, to protect our rights," Airbnb said in a statement.

The case, filed in commercial court in the western town of Lisieux, is set to be heard on September 6.

The French hotel trade association Umih also has a case underway against Airbnb.