Airbnb loses legal battle in Europe
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Airbnb (NASDAQ:ABNB) is encountering more legal troubles after a new ruling from the European Court of Justice.
On Wednesday, the highest court in the EU rejected the online accommodation companyâs case, filed through its Irish operation, against regulations in Belgium that require the company to transmit certain details of transactions to tax authorities. The court explained that while information services are generally protected from such regulations via âfreedom to provide servicesâ statutes in EU law, the Belgian requirement is âof a fiscal nature and, on that basis, is excluded from the scope of the directive on electronic commerce.â
The rejection of Airbnbâs (ABNB) appeal is the latest blow, albeit minor, for the company in Europe as numerous cities have sought legal avenues to restrict its growth. For example, cities like Barcelona, Paris, and Berlin have either banned or severely restricted the companyâs operation at different points in recent years. Meanwhile, major US metros, such as New York, have attempted to enact their own protections to prevent housing shortages. 
In response to growing legislative headaches, especially in Europe, the company went to the extent of offering its own harmonized EU rules plan in December. 
Despite the latest ruling, shares gained on Wednesday morning in New York. 
Read more on why analysts are bullish on Airbnb (ABNB) ahead of its May 3 earnings report.