The home-sharing giants encountered skepticism Friday as they urged a three-judge panel of the Ninth Circuit Court of Appeals to rule that a short-term rental ordinance enacted by Santa Monica, a Southern California beach city, violates a federal law that shields online services from liability for the postings of their users.
- A win for the companies may serve as a template for other internet-based gig-economy firms to challenge regulations across the U.S, while a loss may embolden regulators to follow Santa Monica’s model
- Santa Monica fight is representative of widespread tension between Airbnb and cities that are trying to preserve local quality of living standards and protect affordable housing from being converted into quasi-hotels
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