CIDOB notes Internacionals 222, December 2019 discusses the complex relationship between online short-term rental platforms and local governments, particularly within the European Union. The document highlights how digital platforms have enabled processes of "touristification" in urban areas, often without consideration for existing regulations and zoning laws. This has led to significant displacement of local tenants, reduction in long-term residential stock, and inflation of housing prices, especially in cities with high numbers of visitors.
Local governments have responded with measures to contain and reverse these trends, attempting to regulate the activities of global tech giants like Airbnb, Homeaway, and Housetrip, which together account for 62% of EU revenues in the sector. The tug-of-war between cities and platforms continues, with municipal regulations facing scrutiny at the EU level, leading to protracted legal battles and creating a spatio-temporal zone of legal uncertainty.
A new prospect, the Digital Services Act, has unsettled the industry by potentially revisiting and updating EU regulatory frameworks. Given the challenges current frameworks pose to city governments, the drafting of a new regulatory environment could either open new horizons or close existing ones.
In this context, platforms have sought a centralized, top-down position in the EU to overcome local conflicts. They have engaged in lobbying efforts, notably through the European Holiday Home Association, which aims to influence EU decision-making. Despite this, city governments have also sought collective action at the EU level, though their influence remains limited due to the lack of binding mechanisms in decision-making processes.
City networks, such as Eurocities, are increasingly used as tools for city representatives to exercise soft power and shape transnational agendas. However, coordinating a unified position from diverse memberships can be challenging, often resulting in broad, lowest common denominator policies. The European Committee of the Regions provides advisory support but lacks the ability to enforce policies directly.
In conclusion, the ongoing dispute between cities and short-term rental platforms within the European Union presents a critical juncture for shaping the balance of sovereignty and democracy in urban centers. The evolving European single market and the potential for a comprehensive Digital Services Act could significantly reshape the regulatory landscape and redefine the roles of cities and platforms in the digital age.