by Sarah J.F. Braley | December 05, 2016
According to the Associated Press, Airbnb has agreed to drop a lawsuit against New York City over a new state law it said could have deterred hosts and impaired its revenues. The parties reached a settlement on Friday.
 
Reuters reported that the terms of the settlement say New York City agreed that the law will not be enforced against Airbnb; it is aimed at individual violators.
 
Under the law, large fines can be charged against those who offer to rent their entire living spaces for less than 30 days. The law is aimed at property owners who are bringing in short-term renters instead of looking for more permanent residents. Airbnb's argument, according to the AP, was that the law rewarded the hotel industry at the expense of ordinary New Yorkers. The company said it will work with the city on how the law will be enforced.
 
Democratic assemblywoman Linda Rosenthal, who wrote the law, called the settlement "an astounding about-face" by Airbnb.