Uber and Airbnb should be banned as last resort
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SERVICES such as ride-hailing app Uber and home-rental site Airbnb should only be banned as a last resort, the European Union executive said yesterday, as it seeks to foster development of the “sharing economy.”
In its new guidelines, the European Commission said any restrictions by EU member states on these online services should be proportionate to the public interest at stake.
“Absolute bans and quantitative restrictions should only be used as a measure of last resort,” the commission said in a statement.
The guidelines are good news for the likes of Uber and Airbnb, which have faced outright bans or restrictions in some cities as established industry players complain of unfair competition.
The commission also said such services should not be subject to additional sector-specific rules — for example hotel and taxi regulations — unless they own assets and set the final price. However, they should pay taxes like other service providers.
Airbnb, founded in 2008, and Uber, launched a year later, both grew up in the hot-house San Francisco Internet scene. From the outset, they faced regulatory battles across the United States, and, more recently, around the world.
Both have become favorite targets of local officials and rival trade groups in Europe, which has a tradition of strong social oversight.
Airbnb has faced criticism from city officials in Barcelona and Paris, who say it has driven up property rents.
In the sharing economy, customers use the Internet to contract services such as ride-sharing, where amateur drivers displace professional taxis, or home-sharing, which reduces hotel demand.
Commission Vice-President Jyrki Katainen said the collaborative economy could produce Europe’s next unicorn, or start-up firm worth above US$1 billion.
“Our role is to encourage a regulatory environment that allows new business models to develop while protecting consumers and ensuring fair taxation and employment conditions,” he said.
Taxi drivers have staged protests against Uber in France, Britain, Portugal, Spain and other European countries since 2014.
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