* Berlin court ruling on curbs on home-sharing due * German capital homeowners face fines for short-term lets * EU cautions against bans on “sharing economy” * Airbnb says watching Berlin verdict closely By Tina Bellon BERLIN, June 8 (Reuters) - A Berlin city court is due to make a landmark ruling with ramifications for home rental firms such as Airbnb on Wednesday when it decides if homeowners can engage in short-term lets. Several home-sharing companies have lodged a complaint against an effective ban on such lets in Berlin in the first substantial challenge to such city legislation in Europe. People renting out their homes in the German capital for periods of less than two months face fines of up to 100,000 euros ($111,700). Although landlords can seek a permit, city officials have said they will reject 95 percent of requests. The Berlin showdown comes a week after the European Commission cautioned member states against erecting roadblocks or even outright bans on the emerging “sharing economy” in everything from apartments to local rides by enforcing decades or even centuries-old laws. Airbnb and other home-sharing companies, such as Rocket Internet’s Wimdu, requested the legal opinion of the former head of the city of Berlin’s constitutional court following Berlin’s crackdown. Helge Sodan deemed the new regulation unconstitutional and drafted the complaint. Airbnb, whose website lists 11,700 apartments in Berlin, did not join as a plaintiff but a company spokesman said the verdict would impact Airbnb’s business and it was watching closely. Berlin’s authorities estimate that a total of 15,000 apartments have been taken off the city’s rental market to be operated as businesses housing tourists. City officials say rising rents and a significant housing shortage left them with no choice but to impose the measures. Home-rental groups say the city is using the new legislation to whitewash structural housing problems, turning short-term home-sharing companies into scapegoats. Although a positive verdict would not have binding legal consequences for other jurisdictions, experts expect it to have repercussions throughout Europe, as cities try to balance the interests of the travel and tourism industry with those of tenants who fear rising rents. “Cities are closely watching each other to see what types of regulations are possible and Berlin’s verdict will surely impact the behaviour of other cities,” said Gracia Vara Arribas, a lawyer who advised the EU on the sharing economy. ($1 = 0.8953 euros) (Additional reporting by Ashutosh Pandey; Editing by Ludwig Burger, Andreas Cremer and Alexander Smith)
Airbnb and other home-sharing platforms are awaiting a ruling, due today, by a Berlin city court on the legality of home-sharing in the city. The practice is currently banned in Berlin, and people caught renting out their homes for less than two months can expect fines of up to €100,000 and although landlords can apply for a permit, 95% of such requests are rejected. This does not seem to have deterred Berliners however, as Airbnb currently has 11,700 listings in the city. If the court rules in favour of home-sharing, the ruling would obviously not have legally binding consequences in other regions, although it is thought it would have repercussions across Europe. "Cities are closely watching each other to see what types of regulations are possible and Berlin's verdict will surely impact the behaviour of other cities," said Gracia Vara Arribas, a lawyer who advises the EU on the sharing economy.