Airbnb’s ‘Don’t Punish Us’ for Scofflaws Fails Court Test

  • Judge says further proceedings needed to decide on city rules
  • Case will affect how gig economy firms approach regulation

Dwntown San Francisco.

Photographer: David Paul Morris/Bloomberg
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Airbnb Inc.’s claim that it’s just a conduit for user-generated content was rejected by a judge who said the company may not be able to duck a San Francisco law punishing it when hosts book units that aren’t registered with the city.

U.S. District Judge James Donato on Tuesday rebuffed Airbnb’s argument that because it operates on the internet, it can’t be held responsible if users circumvent local laws. Still, the judge stopped short of letting San Francisco enforce its measure, saying he needs more information to decide whether the city has adequate procedures for verifying registrations.