Airbnb is challenging its designation as a ‘gatekeeper’ under the European Union’s Digital Markets Act (DMA), following its addition to a list for compliance earlier this month.
In September 2023, the European Commission had designated a total of 22 core platform services operated by six major tech giants – Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft – as gatekeepers. However, Airbnb was not included in the list at that time.
In an update on March 7th, the Commission announced that it had launched an investigation to determine whether Airbnb’s core short-term rental service meets the criteria for falling under the DMA. If designated as a gatekeeper, Airbnb would have to comply with stricter requirements for transparency, data sharing, and fair treatment of its business users.
The DMA concerns companies with a significant impact on the EU market, which offer core platforms used by a large number of businesses and consumers. The Commission announced that it will examine Airbnb’s usage data and business practices for a period of five months to determine whether it meets the inclusion criteria.
This challenge comes as the DMA officially came into force on March 7th, giving gatekeepers six months to comply. Penalties for non-compliance can reach up to 10% of a company’s global turnover.
Read also: The Commission designates Booking as a ‘gatekeeper’ and opens a market investigation into X
What Airbnb argues
Airbnb has stated that it supports the EU’s general regulatory goals but insists that it operates differently from the other large platforms included in the Commission’s list. At the same time, the company has faced strong criticism from European cities for its contribution to rising housing costs and the reduction of available properties for long-term rental.
The final decision on whether Airbnb will be designated as a gatekeeper is expected later this year.
