IMPULSEPAPERNO.02
on the business authorisation/licensing requirements
imposed on peer-providers and platforms in the
accommodation/tourismsectorinParis,Rome,Milanand
London.
GuidoSmorto
FullProfessorofComparativeLaw
Dept.Law-UniversityofPalermo
March,2016
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1
EXECUTIVESUMMARY.....................................................................................6
2
INTRODUCTION................................................................................................9
3
FRANCE.PARIS................................................................................................11
3.1
TaskI-Identificationoftheexistingrules...................................................................11
3.2
Thecollaborativeeconomy.........................................................................................11
3.3
Theaccommodationsector.........................................................................................12
3.4
Definitionsandclassifications.....................................................................................12
3.4.1
Residentialuse.........................................................................................................12
3.4.2
Principalandsecondaryresidence..........................................................................13
3.4.3
Meublésdetourisme...............................................................................................14
3.4.4
Residency.................................................................................................................15
3.5
Changeofuse..............................................................................................................16
3.5.1
Communicationregime...........................................................................................16
3.5.2
Exception:résidenceprincipale...............................................................................17
3.5.3
Authorisationregime...............................................................................................18
3.5.4
Authorisationwithcompensationscheme..............................................................18
3.5.5
Rationaleforcompensation....................................................................................21
3.5.6
Exception:résidenceprincipale...............................................................................21
3.6
Temporarychangeofdestination...............................................................................22
3.7
Otherregulations........................................................................................................23
3.8
Taxedeséjour(citytax)..............................................................................................24
3.9
Sanctions.....................................................................................................................24
3.10 Sublet..........................................................................................................................25
3.11 Platforms.Liabilityandduties.....................................................................................26
3.11.1 Loino.57521.6.2004pourlaconfiancedansl’économienumérique....................26
3.11.2 Otherregulations....................................................................................................27
3.12 Homeswap..................................................................................................................28
3.12.1 Moneyandmonetaryobligations...........................................................................28
3.12.2 Remunerationandcontract....................................................................................29
3.12.3 QualificationofhomeswapunderFrenchlaw........................................................31
3.13 Primaryandsecondaryresidence,changeofuseandprofessionalism......................32
3.14 Conclusions.................................................................................................................33
3.15 Legaltexts....................................................................................................................34
4
ITALY.ROME,MILAN......................................................................................36
4.1
4.2
4.3
4.3.1
4.3.2
4.3.3
4.3.4
4.4
4.4.1
TaskI-Identificationoftheexistingrules...................................................................36
Thecollaborativeeconomy.........................................................................................36
Theaccommodationsector.........................................................................................37
State,RegionsandMunicipalities...........................................................................37
ItalianConstitutionandnationallegislation...........................................................37
Regionalandmunicipalcompetence.......................................................................38
Thecivilcode...........................................................................................................39
Atwo-tracksregime....................................................................................................40
Touristicleaseandthecivilcode.............................................................................40
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4.4.2
Otherrulesapplicabletotouristiclease..................................................................40
4.4.3
Regionallegislationand“nonhotelaccommodation”............................................42
4.4.4
Segnalazionecertificatadiinizioattività"–SCIAfornon-hotelaccommodation...43
4.5
Accommodationasbusinessornon-businessactivity................................................45
4.6
Classificationsanddefinitionsoftouristicleaseand“non-hotelaccommodation”....46
4.6.1
Thepresenceofadditionalservices.........................................................................46
4.6.2
Thelengthofactivity...............................................................................................47
4.7
Taxation.......................................................................................................................49
4.8
Regionallaws.Rome...................................................................................................50
4.8.1
Nonhotelaccommodations.Regionalclassification...............................................51
4.9
Regionallaw.Milan.....................................................................................................52
4.9.1
Nonhotelaccommodations.Regionalclassification...............................................53
4.10 Platforms.....................................................................................................................54
4.10.1 Decretolegislativon.70/2003.Attuazionedelladirettiva2000/31/CErelativaa
taluniaspettigiuridicideiservizidellasocietàdell'informazione,inparticolareilcommercio
elettronico,nelmercatointerno..............................................................................................54
4.10.2 Caselaw..................................................................................................................55
4.11 Homeswap..................................................................................................................59
4.11.1 Obligationsandmoney............................................................................................59
4.11.2 Remunerationandcontracts...................................................................................59
4.11.3 QualificationofhomeswapunderItalianlaw........................................................61
4.12 Conclusions.................................................................................................................62
4.13 Legaltexts....................................................................................................................63
5
UNITEDKINGDOM.LONDON.........................................................................65
5.1
TaskI-Identificationoftheexistingrules...................................................................65
5.2
Thecollaborativeeconomy.........................................................................................65
5.3
Theaccommodationsector.........................................................................................65
5.3.1
TheTownandcountryplanningact1990...............................................................66
5.3.2
TheGreaterLondonCouncil(GeneralPowers)act1973.........................................67
5.4
RulesapplicableoutsideLondon.................................................................................68
5.5
Theneedforachange.................................................................................................69
5.6
DiscussionDocument“PromotingthesharingeconomyinLondon.PolicyonshorttermuseofresidentialpropertyinLondon”...........................................................................70
5.7
Deregulationact2015.................................................................................................71
5.8
Changeofuse..............................................................................................................71
5.9
Exemptions..................................................................................................................73
5.10 Enforcement................................................................................................................75
5.11 Sublet..........................................................................................................................76
5.12 Otherregulations........................................................................................................76
5.13 Taxation.......................................................................................................................79
5.14 Platforms.Liabilityandduties.....................................................................................80
5.14.1 ElectronicCommerce(ECDirective)Regulations2002............................................80
5.14.2 EnterpriseandRegulatoryReformAct2013...........................................................81
5.15 Homeswap..................................................................................................................83
5.15.1 Moneyandremuneration........................................................................................83
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5.15.2 Mutualpromisesandconsideration........................................................................84
5.15.3 QualificationofhomeswapunderEnglishlaw.......................................................84
5.16 Conclusions.................................................................................................................85
5.17 Legaltext.....................................................................................................................86
6
LEGALASSESSMENTOFTHEIDENTIFIEDMEASURES...................................87
6.1
TaskII–Legalassessmentoftheidentifiedmeasures................................................87
6.2
Whatisa“service”......................................................................................................87
6.2.1
Purelyinternalsituations.........................................................................................88
6.2.2
Remuneration..........................................................................................................89
6.3
Homeswapas“service”underTFUEandServicesDirective......................................90
6.4
Whatisa“restriction”onservice?..............................................................................92
6.4.1
Nationality...............................................................................................................92
6.4.2
Directandindirectdiscrimination...........................................................................93
6.4.3
Residence.................................................................................................................94
6.5
Directdiscriminationinhome-sharingandshorttermrentals...................................95
6.5.1
France(Paris)...........................................................................................................95
6.5.2
Italy(Rome,Milan)..................................................................................................98
6.5.3
UnitedKingdom(London)........................................................................................98
6.5.4
UnitedKingdom(outsideLondon)...........................................................................99
6.6
Indistinctlyapplicable(non-discriminatory)measures...............................................99
6.6.1
Regulationandtaxation........................................................................................100
6.6.2
Authorizationsandbureaucraticprocedures........................................................101
6.6.3
Pointsofsinglecontactandrighttoinformation..................................................103
6.7
Indistinctlyapplicablemeasuresinhome-sharingandshorttermrentals...............104
6.7.1
France(Paris).........................................................................................................104
6.7.2
Italy(Rome,Milan)................................................................................................106
6.7.3
UnitedKingdom(London)......................................................................................107
6.7.4
UnitedKingdom(outsideLondon).........................................................................108
6.8
TaskII–Legalassessmentoftheidentifiedmeasures..............................................110
6.9
Conditionsforjustifiedrestrictions...........................................................................110
6.9.1
Treatyexceptions..................................................................................................111
6.9.2
Case-lawexceptions..............................................................................................112
6.9.3
Housingshortage,socialdiversity,developmentofurbanenvironmentas
legitimatepublicinterestobjectives......................................................................................113
6.10 Conditionsforjustifiedrestrictionsinhome-sharingandshorttermrentals...........114
6.10.1 France(Paris).........................................................................................................114
6.10.2 Italy(Roma,Milano)..............................................................................................116
6.10.3 UnitedKingdom(London)......................................................................................116
6.10.4 UnitedKingdom(outsideLondon).........................................................................117
6.11 TaskII.Legalassessmentoftheidentifiedmeasures................................................118
6.12 Proportionalityandnecessity....................................................................................118
6.13 Proportionalityandnecessityinhomesharingandshorttermrentals....................119
6.13.1 France(Paris).........................................................................................................119
6.13.2 Italy(Roma,Milan)................................................................................................122
6.13.3 UnitedKingdom(London)......................................................................................123
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6.13.4 UnitedKingdom(outsideLondon).........................................................................124
6.14 Platform.Liabilityandduties.....................................................................................126
7
COMPARISONOFTHEFINDINGS................................................................128
7.1
7.2
7.2.1
7.3
7.3.1
7.3.2
7.3.3
7.4
7.4.1
7.4.2
8
8.1
8.2
8.3
TaskIII–Comparisonofthefindings........................................................................128
AlegalmappingofregulationinFrance,Italy,UK....................................................128
Whatstrategyforthecollaborativeeconomy?Oldrulesversusnewrules..........128
ThenewchallengesforEUinthecollaborativeeconomy........................................129
Fromprofessionalstopeerproviders....................................................................129
Consumerprotection.............................................................................................130
Theroleofplatforms.............................................................................................130
HowexistingEUlawappliestocollaborativeeconomy............................................131
Justifiedrestrictions...............................................................................................131
Proportionalityandnecessity................................................................................132
CONCLUSIVEREMARKSANDFINALRECOMMENDATIONS.......................134
Anewregulatoryframework....................................................................................134
Strictrulesversusprinciples......................................................................................134
Enforcement..............................................................................................................135
5
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1
EXECUTIVESUMMARY
Shorttermrentalsand,morelimitedly,homeswapshavedeeplychangedtheaccommodation
sector in most European cities. New peer-to-peer services not only put into question how
touristaccommodationisplanned,buttheyalsoredesigncityspacesandlocaleconomies,de
factoderegulatingtraditionalservicesandmakingexistingrulesobsolete.ThisImpulsepaper
aims to assess the existing regulatory framework for the collaborative economy in the
accommodation/tourism sector in Paris (chapter 2), Rome/Milan (chapter 3) and London
(chapter4),andtoprovideaviewonitscompatibilitywithEUlaw(chapter5).Intheclosing
chapters, it also articulates some final recommendations on how to address the emerging
challengesofthecollaborativeeconomy(chapters6-7).
Amongthesurveyedcountries,theUKistheonlyonethatamendeditslegislationinresponse
tothespreadingofpeer-to-peerservices.Onthecontrary,nosignificantlegislativechanges
tookplaceinFranceandItaly.Bothapproachesareplausibleandinsomecasestheoldrules
may well be the effective regulatory responses suited for the collaborative economy.
However, it is likely that the many challenges posed by peer-to-peer services require new
rules,atleastinsomecases.
Having regard to the compatibility of national regulations with EU law, none of the rules
reviewedinthispaperdiscriminateonthegroundofnationality.Thesamecannotbesaid
abouttheplaceofresidence,whichplaysasignificantroleinFrenchlegislation(chapter2)
and it may also be relevant under UK law (chapter 4). More often, indistinctly (nondiscriminatory)measuresestablishobstaclescapableofhinderingfreeprovisionofpeer-topeerservices.Theseobstaclesmaybelinkedtobureaucraticandfinancialburdens.Thismay
occurwhenrulesmaketheestablishment/provisionofservicesconditionalupontheissueof
priorauthorisation,asinFrance.Otherobstaclesmaybeduetoalackofclarityinlegislation,
asinItalywheredifferentlayersofnational,regional,andmunicipalrulescreateasomehow
confusedlegalscenariothatmayrenderlessattractivetheprovisionoftheseservices(chapter
3).
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When plainly expressed, the most widespread justifications for restricting the provision of
theseservicesaretheavailabilityoflong-termrentalhouses(especiallyaffordableones),the
promotionofsocialdiversityandafairbalancebetweenhousingandemploymentindifferent
neighborhoods. Safety, health and environmental concerns are also invoked (chapter 5).
WhilethesejustificationsarealllegitimateunderEUlaw-andtheMemberStatesdecideon
thelevelatwhichtheyintendtoguaranteetheirprotectionandthewaythatlevelmustbe
attained–nonethelesstheMemberStatesmustobservetheprincipleofproportionalityin
both regulation and enforcement. Regulation should be proportionate to the scale of
operationandpublicauthoritiesshouldactconsistentlyinresponsetosuspectedbreaches,
takingthemostappropriateaction.
Inthisregard,achoicemustbemadebetweenstrictrulesandprinciples.Ontheonehand,a
clear-cut rule may be preferable to demarcate the scope of rules for professionals and to
definethenon-professionalstatusofpeersoperatingthroughplatforms.Ontheotherhand,
principlesmaybebettersuitedtoaddresssafetyconcernandconsumerprotection(chapter
7).
Themainreasontoamendoldregulationsinthefaceofthesechangesisthenon-professional
statusofpeers.Extendingrulesforprofessionalsalsotopeer-to-peerserviceswouldimpose
disproportionate costs on non-professional providers and erect insurmountable barriers to
entry.Ontheotherhand,therisingofpeer-to-peereconomy,whereprivate,non-professional
individualsprovideservices,mayleadtonovelsafety,health,andenvironmentalconcerns.
Balancing these two conflicting aspects – having different rules for non-professionals and
protectingconsumers-isoneofthemostchallengingaspectsofthecollaborativeeconomy
(chapter6).
Furthermore,theemergenceofthird-partyintermediaries-theonlineplatformsthatmediate
the exchange among peers offering an infrastructure upon which people depend on to
connecttoeachother–makesastrongargumentforreconsideringtheroleofregulationin
themarket.Insomecases,platformsmakethecaseforregulationlesscompelling,thanksto
their self-correcting capacity. However, there may still be the case that regulation is
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preferable,especiallyinthosecaseswhereplatformshavenopossibilityand/orinterestto
correctmarketfailures(chapter6).
In conclusion, new peer-to-peer services may result in unprecedented opportunities of
economicgrowthbuttheycanalsoleadtoaconsiderabledisregardforexistingregulation.A
potential regulatory response for such a scenario entails two complementing strategies:
recognizingplatformsasrulersandenforcers,andallowinghigherflexibilityinregulationand
enforcement(chapter7).Inthisperspective,itiscrucialtodefineanewregulatorytoolkitthat
reallocatesresponsibilities,leveragingplatforms’self-governingcapacity,whileatthesame
timeretainingasignificantpartoftheprocessforpublicregulators.
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2
INTRODUCTION
Withrecenttechnologicalchangesandtheresultingreductionintransactioncosts,anentire
economic system of crowd-based firms for digitally enabled peer-to-peer activities is
emerging,reshapingandinsomecasessupplantinglongestablishedbusinessmodels.Thanks
totheseinnovationsthatfacilitateaccessoverownership,peoplearenowabletoshare,rent
orborrowunderutilizedgoodsandprovidepeer-to-peerservices.
Amongthem,shorttermandhomeswappingarethemostrelevanteconomicactivitieswhich
areemergingfromthisrevolution.Thesenewpeer-to-peerservicesdisrupttraditionallocal
services,influencehousingaffordabilityandchangeurbanenvironment.
ThisImpulsepaperscrutinisetheexistingregulatoryframeworkforthecollaborativeeconomy
intheaccommodation/tourismsectorinParis,Rome,MilanandLondonand,onceidentified
municipalrules,togiveaviewonitscompatibilitywithEUlaw,inrelationtoboth:thepeer
provider-individualorbusiness-whooffersthroughonlineplatformsaspareroomintheir
primaryresidenceoranapartmentforshort-termrentalorhomeexchange/swap,toother
individuals or companies; and the online platforms which advertises and intermediates
between the peer provider offering the assets and the user looking for accommodation
service.Intheclosingpartoftheimpulsepaperthesefindingswillbecomparedinorderto
verifytheactualdegreeoflegalcoordination,harmonization,andunificationthathasbeen
achievedinthefield.
Thefirstpartofthepaper(chapters2-4)identifiesnational,regionalorlocalrulesandrelated
administrative practices that apply and regulate the collaborative economy in the
accommodation/tourismsectorintheabove-mentionedcitiesbothfor:a)providersofthe
assets(rooms,apartments,etc.)forhome-sharingorshort-termrentalsandhomeswapping;
b)onlineplatformsoffering/advertisingthoseassets.
The central part of the impulse paper (chapter 5) will assess: a) whether the applicable
legislationwhichimposesauthorisation,licensesandregistrationrequirementsonproviders
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of collaborative economy services and on intermediation platforms, as identified and
discusses in Chapters 2-4, can be considered a “restriction” under EU law; b) the possible
overriding reason of public interest that could justify such restrictions according to the
competentnationalauthority;c)whethertheidentifiedrestrictionsarejustifiedinviewofthe
principlesofproportionalityandnecessity;d)whichotherlessrestrictivemeansmaybeused
toachieveorprotectthesameoverridingreasonsofgeneralinterest,ifconsideredthatthose
arejustified.Thisparttakesintoaccountallrelevantlegislativeandadministrativemeasures
–amongall,ServicesDirectiveande-CommerceDirective–inordertoverifytheeffective
protectionoffreedomtoprovideservicesandfreedomofestablishment(Articles56and49
TFEU).Aspecialattentionisdevotedtocase-lawandparticularlytodecisionsrenderedbythe
EuropeanCourtofJustice.
A comparative study among the legal solutions adopted for each city is also carried out
(chaptersix),focusingonobservingsimilaritiesaswellasdifferencesineachdistinctivelegal
systemcoveredbythisstudy.
The last part of the paper (chapter seven) is devoted to conclusive remarks and final
recommendations.
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3
3.1
FRANCE.PARIS
TaskI-Identificationoftheexistingrules
First, identify the national, regional or local rules and administrative practices (related for
example to the functioning of the registry) that apply and regulate the above-mentioned
activitiesbothforprovidersoftheassets(rooms,apartments,etc.)forhome-sharingorshorttermrentalsandhomeswapping,andtheonlineplatformsoffering/advertisingthoseassets.
3.2
Thecollaborativeeconomy
In France there is no general law on collaborative economy. However, France is preparing
severallawswhichwillimpactthissector.InJanuary2016theNationalAssemblypassedthe
BillforaDigitalRepublic,jointlypreparedinconsultationwithcitizens,thatestablishesnet
neutrality,dataportabilityandtheconfidentialityofelectroniccorrespondence;statesthat
online review sites must indicate whether their publication has been verified so that
consumerscanassessthedegreeofcredibilityofthereviewsavailableonline;imposespublic
bodiestopublishtheirdatabasesonline;requirespublicauthoritiestoguaranteethequality
andupdatingof“referencedata”suchasthenationaladdressdatabase.1
Otherbills-Nouvellesopportunitéséconomiques(Noé)andSapinII–havebeenpresentedin
thelastmonths.2Theassumptionbehindthesenewbillsisthatcurrenteconomicmodelsare
deeplyquestionedbytechnologicaltransformationsandanewtypeofinnovation–firstof
all, innovation to use - in the same way to create innovation and transformation of the
productive model itself. This brand new innovation is due to digital competition, that is
lowering search costs, helping developing co-operative economy (BlaBlaCar; Airbnb) that
oftenrepresentsadditionalincomeandlessspendingforFrench.3
1
http://www.gouvernement.fr/en/the-digital-bill.
http://proxy-pubminefi.diffusion.finances.gouv.fr/pub/document/18/20703.pdf.
3
http://www.economie.gouv.fr/files/files/PDF/presentation-Noe_0911205.pdf.
2
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3.3
Theaccommodationsector
France is one of the biggest market in short-term rentals. Paris has more than thirty-five
thousandsAirbnblistings,theoverallmajorityofwhichareentirehomes/apartments(around
84%), the rest being private or shared rooms. The average price per night is around one
hundredeuros.Whileeightypercentofhostshaveasinglelisting,theothertwentypercent
havemultiplelistings(rangingfrommorethanonehundredtofewunits).4
Absent a general law on collaborative economy, existing regulatory framework for the
collaborativeeconomyintheaccommodation/tourismsectorismainlybasedonLoin°2014366du24March2014pourl'accèsaulogementetunurbanismerénové(LoiALUR)(4).This
statutegovernstheaccesstohousingandrenovatedurbanplanning,whoseaimistoimprove
access to housing for households and to promote the construction in accordance with the
qualityofthelivingenvironment.OtherrelevantlegislationistheCodeduTourism.
3.4
Definitionsandclassifications
Different legal regimes apply to short-term rentals in France, depending on the type of
dwellingthatisrentedoutanditsdestinationofuse.Thesedistinctionsconcernthedefinition
ofthepremiseas“residential”,andbetweenprimaryresidence(“résidenceprincipale”)and
secondary residence (“résidence sécondaire”). Another relevant category is “meublés de
tourisme”(touristdwellings).Allthesevariancesarerelevantforascertainingthelegalregime
ofshort-termrentalsinthepeer-to-peereconomyinFrance.
3.4.1 Residentialuse
Afirstclassificationtobetakenintoaccountisbasedonwhetherthedwellingisresidentialor
not.AdwellingisdeemedtobeforresidentialuseifthiswasitsdestinationonJanuary1st,
1970.Thisdestinationcanbedemonstratedbyanyevidence.Premisesthathavebeenbuilt
orrestored,inaccordancewithachangeofdestinationafterJanuary1st,1970,aredeemed
to have the destination for which the building or work is allowed. However, when an
4
Source:InsideAirbnb,http://insideairbnb.com/paris/#.
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authorization(subjecttocompensation)hasbeenissuedafterJanuary1,1970tochangethe
destination,bothmodifiedpremiseanddwellingusedforcompensationareconsideredto
havethedestinationspecifiedintheauthorization.
Constituentdeslocauxdestinésàl'habitationtoutescatégoriesdelogementsetleursannexes,
y compris les logements-foyers, logements de gardien, chambres de service, logements de
fonction,logementsinclusdansunbailcommercial,locauxmeublésdonnésenlocationdans
lesconditionsdel'articleL.632-1.
Pour l'application de la présente section, un local est réputé à usage d'habitation s'il était
affectéàcetusageau1erjanvier1970.Cetteaffectationpeutêtreétabliepartoutmodede
preuve. Les locaux construits ou faisant l'objet de travaux ayant pour conséquence d'en
changerladestinationpostérieurementau1erjanvier1970sontréputésavoirl'usagepour
lequellaconstructionoulestravauxsontautorisés.
Toutefois, lorsqu'une autorisation administrative subordonnée à une compensation a été
accordée après le 1er janvier 1970 pour changer l'usage d'un local mentionné à l'alinéa
précédent,lelocalautoriséàchangerd'usageetlelocalayantservidecompensationsont
réputésavoirl'usagerésultantdel'autorisation.5
3.4.2 Principalandsecondaryresidence
Anotherimportantdistinction,thatmayaffectthelegalrulesapplicabletoshort-termrentals
and home swap, must be traced between principal and secondary residence. The main
residence is any dwelling occupied for at least eight months a year, unless there are
professionalobligations,healthorforcemajeure,occureithertothelessee,herpartneror
dependent family member, in accordance with the meanings devised by the Code de la
constructionetdel'habitation.
Larésidenceprincipaleestentenduecommelelogementoccupéaumoinshuitmoisparan,
saufobligationprofessionnelle,raisondesantéoucasdeforcemajeure,soitparlepreneurou
5
ArticleL631-7,Codedelaconstructionetdel'habitation.
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son conjoint, soit par une personne à charge au sens du code de la construction et de
l'habitation.6
Followingthisrule,theaccommodationcannotremainunoccupiedbyresidentsformorethan
120 days per year, in order to be regarded as “résidence principale”. Therefore, an
accommodationthatisrentedmorethan120daysinasolaryearisregardedasa“résidence
sécondaire”.
3.4.3 Meublésdetourisme
Thedefinitionof“meublésdetourisme”isalsoofgreatimportanceforshort-termrentals.
Meublésdetourismearefurnishedvillas,apartmentsorstudios,thatareintheexclusiveuse
ofthetenant,andareofferedforrenttotemporaryguests,whodonotelectdomicileinthe
renteddwelling,foraperiodofstayingdeterminedbyday,weekormonth.
Lesmeublésdetourismesontdesvillas,appartements,oustudiosmeublés,àl'usageexclusif
dulocataire,offertsenlocationàuneclientèledepassagequiyeffectueunséjourcaractérisé
parunelocationàlajournée,àlasemaineouaumois,etquin'yélitpasdomicile.7
Meublésdetourismedifferfromothertypesofaccommodation,suchashotelsandtourism
residences,inthattheyarereservedfortheexclusiveuseofthetenant,withnoreception,
additionalservicesorsharedfacilities.TheyalsodifferfromB&B,becauseinthislattercase
theownerlivesinthepremiseduringtherentalperiod.Further,seasonalorholidayrentals
differ from the residential lease by two criteria: the tenant does not elect domicile in the
renteddwelling,whichismainlyforvacation;rentalperiodslastnolongerthanninetydays.8
6
Art.2,Loin°89-462du6juillet1989tendantàaméliorerlesrapportslocatifsetportantmodificationdelaloin°86-1290
du23décembre1986,ModifiéparLOIn°2014-366du24mars2014-art.1.
7
ArticleD324-1.Codedetourism.
8
http://www.entreprises.gouv.fr/tourisme/meubles-tourisme.
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3.4.4 Residency
Thelastrelevantconcepttobedefinedinordertoassessthedisciplineapplicabletoshort
termrentalsandtoverifyhowtheserulesimpactwithEUlawis“residency”.
DeterminationofresidencystatusinFranceisgovernedbyageneralruleprovidingthatthose
who spend at least 183 days per calendar year in France are deemed to be resident.
Alternatively,apersonisregardedasresidentifanyoneoftheseconditionsapply:havingthe
mainhomeinFrance;carryingonaprofessionalactivityinFrance(eitherself-employedoras
anemployee);havingthecentreofeconomicinterestsinFrance.
AccordingtoArt.4B,CodeGénéraldesImpôts(CGI):
“1.SontconsidéréescommeayantleurdomicilefiscalenFranceausensdel'article4A:
a.LespersonnesquiontenFranceleurfoyeroulelieudeleurséjourprincipal;
b.CellesquiexercentenFranceuneactivitéprofessionnelle,salariéeounon,àmoinsqu'elles
nejustifientquecetteactivitéyestexercéeàtitreaccessoire;
c.CellesquiontenFrancelecentredeleursintérêtséconomiques.
2.SontégalementconsidéréscommeayantleurdomicilefiscalenFrancelesagentsdel'Etat
quiexercentleursfonctionsousontchargésdemissiondansunpaysétrangeretquinesont
passoumisdanscepaysàunimpôtpersonnelsurl'ensembledeleursrevenus.”9
Art.4A,oftheCodeGénéraldesImpôts(CGI),statesthat:“LespersonnesquiontenFrance
leurdomicilefiscalsontpassiblesdel'impôtsurlerevenuenraisondel'ensembledeleurs
revenus.CellesdontledomicilefiscalestsituéhorsdeFrancesontpassiblesdecetimpôten
raisondeleursseulsrevenusdesourcefrançaise.”10
Onceidentifiedthemeaningof“residentialuse”,“primaryresidence”,“secondaryresidence”
and“touristicdwelling”underFrenchlaw,itisnowpossibletoverifyhowrentingaplaceto
stayforshort-termrentalstoguestisregulatedinFrance.
9
Art.4BoftheCodeGénéraldesImpôts(CGI).
Art.4AoftheCodeGénéraldesImpôts(CGI).
10
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3.5
Changeofuse
Rentingafurnishedlodgingrepeatedlyforshortperiodstotransientguests,whodonotelect
theirdomicileinthelodging,isdeemedasachangeintheuse.
Le fait de louer un local meublé destiné à l'habitation de manière répétée pour de courtes
duréesàuneclientèledepassagequin'yélitpasdomicileconstitueunchangementd'usage
ausensduprésentarticle.11
Thelegalregimeofchangeinusesignificantlydiffersfromplacetoplace,rangingfromno
formalrequirementatalltocommunicationor-insomecases-authorizationregime.Inthis
latter case, a compensation may be required (see infra). Thus, change of use is subject to
differentrulesdependingonwherethepremiseislocated.
3.5.1 Communicationregime
Anypersonofferingameublédetourismeforrent,whetherclassifiedornot,mustdeclareit
tothemayorofthemunicipalitywherethepremiseislocated.
Toutepersonnequioffreàlalocationunmeublédetourisme,quecelui-cisoitclasséounon
ausensduprésentcode,doitenavoirpréalablementfaitladéclarationauprèsdumairedela
communeoùestsituélemeublé.12
Thedeclarationmustbesenttothemayorofthemunicipalitywherethepremiseislocated
bycertifiedmailandreturnreceipt.Itmustspecify:theidentityandaddressofthedeclarant,
theaddressofthemeublédetourisme,thenumberofrooms/beds,andtheanticipatedrental
periods. When applicable, the declarant must also communicate the date of classification
11
12
Art.L631-7,Codedelaconstructionetdel'habitation.
Art.L324-1-1,CodeduTourisme.
16
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decisionandthelevelofclassificationofthemeublédetourisme.Incaseofanychangeofthe
abovementionedinformation,anewdeclarationthemayorofthemunicipalitywherethe
premiseislocatedisrequired.Thelistoffurnishedaccommodation,classifiedornotwithin
themeaningofthiscodeisavailableattheTownHall.
Ladéclarationdelocationd'unmeublédetourisme,quecelui-cisoitclasséounonausensdu
présentcode,prévueàl'articleL.324-1-1estadresséeaumairedelacommuneoùestsituéle
meublépartoutmoyenpermettantd'enobtenirunaccuséderéception.
Ladéclarationprécisel'identitéetl'adressedudéclarant,l'adressedumeublédetourisme,le
nombredepiècescomposantlemeublé,lenombredelits,laoulespériodesprévisionnellesde
locationet,lecaséchéant,ladatedeladécisiondeclassementetleniveaudeclassementdes
meublésdetourisme.
Tout changement concernant les éléments d'information que comporte la déclaration fait
l'objetd'unenouvelledéclarationenmairie.
Lalistedesmeublésdetourisme,classésounonausensduprésentcode,estconsultableen
mairie.13
3.5.2 Exception:résidenceprincipale
However,whenthedwellingistheprimaryresidence-thatistosay,whentheownerlives
theremorethaneightmonthsayear-thereisnodutytodeclaretheproperty.Asaresult,
thedutytocommunicatedoesnotapplytopremisesthatarethe“résidenceprincipale”ofthe
landlord.
Cettedéclarationpréalablen'estpasobligatoirelorsquelelocalàusaged'habitationconstitue
larésidenceprincipaleduloueur,ausensdel'article2delaloin°89-462du6juillet1989
tendantàaméliorerlesrapportslocatifsetportantmodificationdelaloin°86-1290du23
décembre1986.14
13
14
Art.D324-1-1,CodeduTourisme.
Art.L324-1-1CodeduTourisme.
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3.5.3 Authorisationregime
Insomegeographicalareas,apriorauthorizationissuedbyCityHallisalsorequiredinorder
torentafurnishedaccommodationhousingthatdeterminesachangeofuseofthedwelling,
frommainresidencetotouristfurnishedpremise.
Thisauthorizationschemeappliesto:Paris;themunicipalitiesofthesuburbs(Hauts-de-Seine,
Seine-Saint-DenisandVal-de-Marne);municipalitieswithmorethantwohundred-thousands
inhabitants.Inallthesecasesthechangeofuseofpremisesforhousingissubjecttoprior
authorization,asprovidedbyArticleL.631-7-1.
Laprésentesectionestapplicableauxcommunesdeplusde200000habitantsetàcellesdes
départements des Hauts-de-Seine, de la Seine-Saint-Denis et du Val-de-Marne. Dans ces
communes,lechangementd'usagedeslocauxdestinésàl'habitationest,danslesconditions
fixéesparl'articleL.631-7-1,soumisàautorisationpréalable.15
3.5.4 Authorisationwithcompensationscheme
In above-specified municipalities and regions, such authorization is granted subject to a
“compensation”. Compensation requires the requester to convert an area of commercial
premisesinto“residential”,whichisequivalenttotheonetobeusedasshorttermrental.In
sum,theauthorizationtoapermanentchangeofdestinationisconditionaltoacompensation
obligation,consistinginthetransformationintohousingofasurfaceequivalenttotheone
usedfortouristicaccommodation.16
15
Art.L631-7(6)CodedeConstructionetd'Habitation.
SeeMairiedePris,BureaudelaProtectiondesLocauxd’Habitation–DirectionduLogementetdel’Habitat-Règlement
municipalfixantlesconditionsdedélivrancedesautorisationsdechangementd’usagedelocauxd’habitationetdéterminant
les compensations en application de la section 2 du chapitre 1er du titre III du livre VI du Code de la construction et de
l’habitation-November2014.InParisthechangeofusecanbesubjecttodifferenttypesofauthorizations:1):mixeduse
authorization,issuedtoapersonexercisingaprofessionalorcommercialactivityinherprincipalresidence;2)“personal”
authorization,issuedtoaspecificpersonforthedurationofheractivityinthelocal;3)changeofdestinationofthedwelling,
permanently turning a dwelling into professional or commercial use. http://www.paris.fr/services-et-infospratiques/urbanisme-et-architecture/demandes-d-autorisations/exercer-une-activite-dans-un-logement-172.Forchangeof
destination of the dwelling, permanently turning a dwelling into professional or commercial use, see https://apisite.paris.fr/images/72044.
16
18
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Inordertocomplywiththisprescription,applicantsforachangeofusecanalternatively:a)
proposeascompensationanotherpremisethatsheowns,turningitintohousing;b)buya
stockcompensationfromathirdparty,whoistheownerofapremisewithauseotherthan
residential (offices, shops ...), and turn it into housing. Following this alternative, a title of
compensationcanbeeitherapremiseownedbytherequesterora“merchantabilitytransfer
certificate”soldinthemarket.Inanycase,oncethetitleofcompensationisobtained,the
requestercanfileanapplicationforpermanentchangeofuse.
Thecompensationconsistsintheconversionofnon-residentialpremisesintohousing.The
premisesofferedascompensationmustcumulatively:a)beofequivalentqualityandsurface
to those subject to the change of use, b) be located in the same arrondissement of the
convertedpremise(art.2,co.1).
Leslocauxproposésencompensationdoiventcumulativement:
a)correspondreàdesunitésdelogement,etêtredequalitéetdesurfaceéquivalentesàcelles
faisantl’objetduchangementd’usage,lesdossiersétantexaminésenfonctiondelaqualité
d’habitabilitédeslocaux.Leslocauxapportésencompensationdoiventrépondreauxnormes
définiesparledécretdu30janvier2002relatifauxcaractéristiquesdulogementdécent;
b) être situés dans le même arrondissement que les locaux d’habitation faisant l’objet du
changementd’usage.
In some special areas (secteur de compensation renforcée), defined in the Annex to the
Municipalregulation,thearearequiredisdoubled(art.2,co.2):
Danslesecteurdecompensationrenforcéedéfinienannexen°1,pardérogationaua)duI,les
locaux proposés en compensation doivent représenter une surface double de celle faisant
l’objet de la demande du changement d’usage, sauf si ces locaux sont transformés en
logementslocatifssociauxfaisantl’objetd’uneconventionconclueenapplicationdel’article
L351-2duCodedelaconstructionetdel’habitationd’uneduréeminimalede20ans.
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Compensationisneitheratax,noritismonetary.Nonethelessitcanbeveryexpensive.Even
if there are no official prices for purchase of “compensation” and prices are negotiated
betweenthebuyerandseller,varyingdependingonwheretheislocated,theaverageprice
inParisisaround€1,600persquaremeter,withverysignificantdifferences,rangingfrom€
400perm²upto€3,000perm²(especiallyinthosewest/centerdistrictsofParis,wherethe
demandforshottermrentalsisparticularlystrong).17
Theauthorizationisconsideredtobepersonalanditisrelatedtotheperson.Itexpireswhen
thebeneficiaryendsherprofessionalactivityforanyreasonwhatsoever.However,whenthe
authorizationissubjecttocompensation,thetitleisattachedtothepremise.Premisesoffered
incompensationarelistedintheauthorizationandrecordedinthepublicregister.
L'autorisationpréalableauchangementd'usageestdélivréeparlemairedelacommunedans
laquelleestsituél'immeuble,aprèsavis,àParis,MarseilleetLyon,dumaired'arrondissement
concerné.Ellepeutêtresubordonnéeàunecompensationsouslaformedelatransformation
concomitanteenhabitationdelocauxayantunautreusage.
L'autorisationdechangementd'usageestaccordéeàtitrepersonnel.Ellecessedeproduire
effet lorsqu'il est mis fin, à titre définitif, pour quelque raison que ce soit, à l'exercice
professionnel du bénéficiaire. Toutefois, lorsque l'autorisation est subordonnée à une
compensation, le titre est attaché au local et non à la personne. Les locaux offerts en
compensation sont mentionnés dans l'autorisation qui est publiée au fichier immobilier ou
inscriteaulivrefoncier.18
17
http://www.paris.fr/services-et-infos-pratiques/urbanisme-et-architecture/demandes-d-autorisations/exercer-uneactivite-dans-un-logement-172#autorisation-3-le-changement-d-usage-a-caractere-reel-avec-compensation_5.
18
Article L631-7-1, Code de Construction et d'Habitation. In its website, Airbnb itself specifies: Si votre bien entre
actuellement dans la catégorie des locaux destinés à l’habitation, le fait de le louer de manière répétée pour de courtes
durées à une clientèle de passage qui n’y élit pas domicile constitue un changement d’usage soumis à une autorisation
préalabledelamairie.
20
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3.5.5 Rationaleforcompensation
As reported, the authorization for a change of destination and for the transformation of
housingpremisesintomeublédetourisme,repeatedlyrentedforshortperiodstotransient
guestswhodonotestablishtheirdomicilethere,issubjecttocompensation.
The main purpose of this legal requirement is the need not to aggravate the shortage of
housing.TheobjectiveofFrenchregulationonthechangeofuseofresidentialpremise,and
ofthissystembasedoncompensation,isnotworsenthelackofhousingincitieslikeParis.
Further,legislationtakesintoaccountsocialdiversityobjectivesandbalancebetweenhousing
and employment in different neighborhoods of Paris, in accordance with local housing
programandthelocaldevelopmentplaninforceinParis.19
3.5.6 Exception:résidenceprincipale
Whenthehousingpremisesaretheprincipalresidenceofthelandlordwithinthemeaningof
Article2ofLawNo.89-462ofJuly6,1989(…)theauthorizationtochangetheuse,provided
forinArticleL.631-7ofthisCodeorunderthisarticle,isnotnecessarytorentthepremises
forshortperiodstotransientguestswhodonotelectdomicile.
Lorsquelelocalàusaged'habitationconstituelarésidenceprincipaleduloueur,ausensde
l'article 2 de la loi n° 89-462 du 6 juillet 1989 tendant à améliorer les rapports locatifs et
portantmodificationdelaloin°86-1290du23décembre1986,l'autorisationdechangement
d'usageprévueàl'articleL.631-7duprésentcodeoucelleprévueaupresentarticlen'estpas
nécessaire pour le louer pour de courtes durées à une clientèle de passage qui n'y élit pas
domicile.20
19
http://www.paris.fr/services-et-infos-pratiques/urbanisme-et-architecture/demandes-d-autorisations/exercer-uneactivite-dans-un-logement-172#autorisation-3-le-changement-d-usage-a-caractere-reel-avec-compensation_5.
20
ArticleL631-7-1Aalinéa5,CodedeConstructionetd'Habitation.
21
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3.6
Temporarychangeofdestination
Apartialexceptionispermissiblefortemporarychangesofdestination.Aresolutionofthe
Municipalcouncilmaysetatemporaryauthorizationregimeforchangeinuse,allowingan
individualtorentherdwellingforshortperiodstotransientguestswhodonotelectdomicile
there.Theresolutionsetstheconditionsforissuingthistemporaryauthorizationbythemayor
of the municipality where the property is situated (the maire d'arrondissement in Paris,
Marseille and Lyon). The resolution also determines the criteria for this temporary
authorization,whichmayrelatetothedurationofthelease,thephysicalcharacteristicsofthe
placeanditslocation,inaccordancewithspecificcharacteristicsoftheresidentialpremises
market and the need to to worsen the housing shortage. These criteria can be adjusted
dependingonthenumberofauthorizationsgrantedtothesameowner.
Une délibération du conseil municipal peut définir un régime d'autorisation temporaire de
changementd'usagepermettantàunepersonnephysiquedelouerpourdecourtesduréesdes
locauxdestinésàl'habitationàuneclientèledepassagequin'yélitpasdomicile.
Ladélibérationfixelesconditionsdedélivrancedecetteautorisationtemporaireparlemaire
delacommunedanslaquelleestsituél'immeubleaprèsavis,àParis,MarseilleetLyon,du
maired'arrondissementconcerné.Elledétermineégalementlescritèresdecetteautorisation
temporaire,quipeuventportersurladuréedescontratsdelocation,surlescaractéristiques
physiquesdulocalainsiquesursalocalisationenfonctionnotammentdescaractéristiquesdes
marchésdelocauxd'habitationetdelanécessitédenepasaggraverlapénuriedelogements.
Cescritèrespeuventêtremodulésenfonctiondunombred'autorisationsaccordéesàunmême
propriétaire.
Si la commune est membre d'un établissement public de coopération intercommunale
compétent en matière de plan local d'urbanisme, la délibération est prise par l'organe
délibérantdecetétablissement.
Lelocalàusaged'habitationbénéficiantdecetteautorisationtemporairenechangepasde
destination,ausensdu2°duIIdel'articleL.123-1-5ducodedel'urbanisme.21
21
ArticleL631-7-1ACrééparLOIn°2014-366du24mars2014-art.16.
22
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3.7
Otherregulations
Inordertocomplywithregulationforshort-termrentals,otherdutiesareonthelessor.First
ofall,thelessorisobliged,bythenatureofthecontractandwithouttheneedofanyspecial
writtenstatement,togranttothelesseeadecentstay.Iftherentedpremiseisunsuitablefor
residentialuse,thelessorcannotclaimthevoidnessoftheleaseoritstermination,inorder
toobtaintheevictionoftheoccupier.Further,thelessorhasalegaldutytoguaranteethat
the rented place can be used for the purpose for which it was rented and ensure the
enjoymentoftherentedplaceduringthelease,thecontinuityandthequalityofthestay.
Lebailleurestobligé,parlanatureducontrat,etsansqu'ilsoitbesoind'aucunestipulation
particulière:Dedélivreraupreneurlachoselouéeet,s'ils'agitdesonhabitationprincipale,
unlogementdécent.Lorsquedeslocauxlouésàusaged'habitationsontimpropresàcetusage,
le bailleur ne peut se prévaloir de la nullité du bail ou de sa résiliation pour demander
l'expulsiondel'occupant;D'entretenircettechoseenétatdeserviràl'usagepourlequelellea
été louée ; D'en faire jouir paisiblement le preneur pendant la durée du bail; D'assurer
égalementlapermanenceetlaqualitédesplantations.22
Otherobligationsconcernthesafetyofthepremise:e.g.toinstallastandardsmokedetector
and, if the house is leased, to ensure that the smoke detector is properly working in the
establishmentoftheinventory23andtoascertainthesafetyofswimmingpools,ifany.24
22
Article1719Codecivil.
ArticleL129-8,Codedelaconstructionetdel'habitation.«Lepropriétaired'unlogementinstalledanscelui-ciaumoinsun
détecteur de fumée normalisé et s'assure, si le logement est mis en location, de son bon fonctionnement lors de
l'établissementdel'étatdeslieuxmentionnéàl'article3-2delaloin°89-462du6juillet1989tendantàaméliorerlesrapports
locatifsetportantmodificationdelaloin°86-1290du23décembre1986.L'occupantd'unlogement,qu'ilsoitlocataireou
propriétaire,veilleàl'entretienetaubonfonctionnementdecedispositifetassuresonrenouvellement,sinécessaire,tant
qu'iloccupelelogement.Cetteobligationincombeaupropriétairenonoccupantdansdesconditionsdéfiniespardécreten
Conseild'Etat,notammentpourleslocationssaisonnières,lesfoyers,leslogementsdefonctionetleslocationsmeublées.Ce
décret fixe également les mesures de sécurité à mettre en œuvre par les propriétaires dans les parties communes des
immeublespourprévenirlerisqued'incendie.L'occupantdulogementnotifiecetteinstallationàl'assureuraveclequelila
concluuncontratgarantissantlesdommagesd'incendie.»
24
ArticleR128-1,Codedelaconstructionetdel'habitation.«Lesmaîtresd'ouvragedespiscinesconstruitesouinstalléesà
partirdu1erjanvier2004doiventlesavoirpourvuesd'undispositifdesécuritédestinéàprévenirlesnoyades,auplustardà
la mise en eau, ou, si les travaux de mise en place des dispositifs nécessitent une mise en eau préalable, au plus tard à
l'achèvementdestravauxdelapiscine.»
23
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3.8
Taxedeséjour(citytax).
After October 1st, 2015, a tax of 0.83 euros per person per night is charged in Paris for
accommodationin“meubléstouristiquesnonclassés”anditincludesthecity-imposedtourist
taxandtheadministrativedistricttax.25Accordingtotheagreementconcludedbetweenthe
cityofParisandAirbnb,thistaxisaddedtothetotalamountpaidbyguestsforstaysinParis
andisdirectlyremittedbyAirbnbtoCityHall.26
3.9
Sanctions
AnyonewhoviolatestheprovisionsofArticleL.631-7ordoesnotcomplywiththeconditions
orobligationsimposedunderthatarticleisfined€25,000.ThefineisimposedbythePublic
prosecutorandissuedbythePresidentoftheCourt.Thefineistobepaidtothemunicipality
wherethebuildingislocated.
Anordertoreturntheillegallytransformedpremisetoresidentialusecanalsobeissuedby
thePresidentoftheCourt.Theordermustbeexecutedwithinatimelimit;attheexpiration
ofthisterm,thejudgecondemnstheownertopayapenalty(astreinte)uptoonethousand
eurosperdaypersquaremeter.Damagesaretobepaidtothecitywherethepropertyis
situated. When the deadline is expired, the administration may proceed ex officio to the
evictionoftheoccupiersanddothenecessarywork,attheexpensesoftheinfringer.
Toutepersonnequienfreintlesdispositionsdel'articleL.631-7ouquineseconformepasaux
conditionsouobligationsimposéesenapplicationduditarticleestcondamnéeàuneamende
de25000euros.
Cetteamendeestprononcéeàlarequêteduministèrepublicparleprésidentdutribunalde
grandeinstancedulieudel'immeuble,statuantenréféré;leproduitenestintégralement
verséàlacommunedanslaquelleestsituéel'immeuble.
Le président du tribunal ordonne le retour à l'habitation des locaux transformés sans
25
26
http://next.paris.fr/pro/df-fiscalite-des-entreprises/taxe-de-sejour/rub_9536_stand_88121_port_23422.
http://publicpolicy.airbnb.com/wp-content/uploads/2015/08/Parisrelease-English.pdf.
24
IMPULSEPAPERNO.02
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autorisationdansundélaiqu'ilfixe.Al'expirationdecelui-ci,ilprononceuneastreinted'un
montantmaximalde1000eurosparjouretparmètrecarréutiledeslocauxirrégulièrement
transformés. Le produit en est intégralement versé à la commune dans laquelle est situé
l'immeuble.
Passécedélai,l'administrationpeutprocéderd'office,auxfraisducontrevenant,àl'expulsion
desoccupantsetàl'exécutiondestravauxnécessaires.27
3.10 Sublet
Tosubletthedwellinganauthorizationissuedbytheownerisusuallyrequired.
Lelocatairenepeutnicéderlecontratdelocation,nisous-louerlelogementsaufavecl'accord
écrit du bailleur, y compris sur le prix du loyer. Le prix du loyer au mètre carré de surface
habitabledeslocauxsous-louésnepeutexcéderceluipayéparlelocataireprincipal.
Lelocatairetransmetausous-locatairel'autorisationécritedubailleuretlacopiedubailen
cours.Encasdecessationducontratprincipal,lesous-locatairenepeutseprévaloird'aucun
droitàl'encontredubailleurnid'aucuntitred'occupation.
Lesautresdispositionsdelaprésenteloinesontpasapplicablesaucontratdesous-location.28
SubletisforbiddenforHabitationàloyermodéré(HLM).
Danstouslesimmeublesdestinésàlalocationetfinancésaumoyendecréditsprévusparle
livreIII,ilestinterditdelouerenmeubléoudesous-louerunlogement,meubléounon,sous
quelqueformequecesoit,souspeined'uneamendede9000€.29
27
L651-2,CodedeConstructionetd'Habitation.
Art.8,Loidu6juillet1989.
29
Art.L442-8,CodedeConstructionetd'Habitation.
28
25
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3.11 Platforms.Liabilityandduties
3.11.1 Loino.57521.6.2004pourlaconfiancedansl’économienumérique
According to the E-commerce Directive 2000/31, internet intermediary service providers
shouldnotbeheldliableforthecontentthattheytransmit,storeorhost,aslongastheyact
inastrictlypassivemanner(articles12to14).AndthisprinciplehasbeentransposedinFrance
withthereceptionoftheDirective.30
UnderFrenchlaw,intermediariesloseprotectioniftheyaretoo“active”,asopposedtobeing
“passive” or “neutral” - the more discretion the platform exercises in managing the
functioning of the website, the more responsibility it has. Despite this reception, it is not
alwayseasytodefinethelimitsonwhatintermediariescando,beforelosingthepossibilityto
benefitfromthelimitationsofliabilitysetoutintheDirective.Thelawrequirestheservice
providerstoactasintermediariesandtomaintainapassiveroleinordertobenefitfromthe
liabilityexemption.However,thelevelofpassivenessdiffersamongthethreetypesofservice
providers.
In2007theCourtofParisruledthat,althoughsocialnetworkhostsinformationprovidedby
itsusers,itnonethelessdoesnotlimititselftothisfunction,offeringapresentationstructure,
and displaying banners from which it clearly draws profits. Thus acting as an editor with
comingresponsibilities.31
Twoyearslater,anotherdecisionbythesameCourtrecognisesvideoplatformYouTubeasa
hostingprovider,despitetheofferingofthepresentationstructureandsearchfacilities,since
theseactivitiesdonotinfluenceitsqualificationashostingprovider.32
30
Loino.57521.6.2004pourlaconfiancedansl’économienumérique.BeforetheadoptionoftheDirective,in1996abill
wasintroducedtheMinisterofTelecommunicationtolimittheliabilityofonlineintermediaries.Nevertheless,caselawvaried
considerablysinceFrenchlegaldoctrinemadealsouseofgeneraltortlawinordertodefinethesecases.
31
T.G.I.Paris,réf.,22June2007,Lafessev.Myspace.
32
Bayard Presse / YouTube LLC, TGI de Paris 3ème chambre, 2ème section, 10 July 2009, available at
www.legalis.net/jurisprudence-decision.php3?id_article=2693.SeealsoLegalanalysisofaSingleMarketforanInformation
Society–Liabilityofonlineintermediaries,2009,
26
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Inathirdcase,theCourtruledthataserviceproviderwhowasawareofthepossibilitythat
usersuploadillegalcontent,hadanobligationtomonitorthiscontentbeforeitwaspublished
onthewebsite.33
Finally,in2012adecisionbytheCourdeCassationfoundafamousecommercewebsiteliable
forabstentionandnegligence,resultinginitsfailuretosetupeffectiveandappropriatemeans
to control the website. The website was not deemed as a “passive host” but rather as an
“activebroker”,playinganessentialroleinthecommercializationofproductsandprofiting
fromsales.Asabroker—ratherthanatechnicalintermediary—itwasheldineligibleunder
thehostingexemptionanddeemedliableforfailingtocontrolitsownactivity.34
Itisnotentirelyclearwhetherpeer-to-peernetworksmaybeconsideredas“mereconduit”
providers (see art. 12, Directive), acting in a passive manner, so benefiting from liability
exemptions. As a matter of fact, given the central role that online platforms perform in
collaborativeeconomy,itishighlylikelythattheywouldbeconsideredas“active”,according
toFrenchcaselaw,andheldliableaccordingtogeneraltortlaw.
3.11.2 Otherregulations
Beside general rules on responsibility for online platforms, online intermediaries in the
accommodationsectorhaveadditionalduties.
Anyonewhoengagesorassistsalessorinexchangeformoney,throughactivityornegotiation
orbyprovidingadigitalplatform,hasadutytoinformthelessoraboutanypriordeclaration
orauthorizationrequiredbythelawandtoobtainadeclarationofcompliance.Itfollowsthat
whenadwellingisrentedviaarealestateagencyoranonlinebookingsite,theagencyorthe
platformmustinformthelessoraboutherlegalobligationsand,ifnecessary,abouttheneed
33
ZadigProductionsv.GoogleInc.,CourtofAppealsofParis,December3,2010.
CourdeCassation,eBayInc.etal.v.LVMH,ParfumsChristianDioretal.,May3,2012(affirmingC.A.ParisSep.3,2010),
holdingeBayliableforthirdparties’salesoneBaybecauseplayedan“activerole”inprovidingassistanceinthepromotion
and optimization of these offers. eBay was also held to have red flag knowledge of infringing activity because of (i) the
multitudenoticesofinfringementitreceivedonsalesconcerningthistypeofproductsand(ii)itspromotionandinvolvement
inthesesales..
34
27
IMPULSEPAPERNO.02
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of a prior communication or authorization for the change of use of the premise. Further,
beforerentingadwellingsubjecttoarticleL.324-1-1oftheCodedutourismeandarticlesL.
631-7andfollowingoftheCodeofConstructionandHousing,theagencyortheplatformmust
obtainaswornstatementattestingthatthelessorcompliedwiththeprescribedformalities.35
Toute personne qui se livre ou prête son concours contre rémunération, par une activité
d'entremiseoudenégociationouparlamiseàdispositiond'uneplateformenumérique,àla
miseenlocationd'unlogementsoumisàl'articleL.324-1-1duprésentcodeetauxarticlesL.
631-7etsuivantsducodedelaconstructionetdel'habitationinformeleloueurdesobligations
de déclaration ou d'autorisation préalables prévues par ces articles et obtient de lui,
préalablementàlalocationdubien,unedéclarationsurl'honneurattestantdurespectdeces
obligations.36
Inaddition,LawNo.2015-1785ofFinance2016requiresundertakingstoinformindividuals
that perform business transactions through it of their tax and social obligations (this rule
appliestotransactionstakingplaceafter1stJuly2016).37
3.12 Homeswap
3.12.1 Moneyandmonetaryobligations.
InordertoqualifyhomeswapunderFrenchlaw,anelucidationofconceptssuchasmoney
andmonetaryobligationmaybeofuse.
Absentastatutorydefinitionofmoney,accordingtooneofthemostwell-knowndefinitions,
moneycanbedescribedas“alegalinstrumentforpaymentthatcanhaveeitherametalora
fiduciarybase,inaccordancewithmonetarysystems,ormoreoftenacombinationofthetwo”
35
https://www.service-public.fr/particuliers/vosdroits/F2043.
LOIn°2014-366du24mars2014pourl'accèsaulogementetunurbanismerénové-Article11.
37
https://www.service-public.fr/particuliers/vosdroits/F2043.
36
28
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(“uninstrumentlégaldepaiement,pouvantavoir,suivantlessystèmesmonétaires,unebase
métalliqueouunebasefiduciaire,leplussouventparcombinaisondesdeux”).38
Under French law, money obligations are subject to the so-called nominalist principle. It
impliesthataunitofcurrencyisalwaysequaltoitselfandunaffectedneitherbytheexternal
changes in the value of currency (the rate of exchange) nor by the internal changes. This
principleisfamouslylaiddowninart.1895c.c.(prêtenargent):Theobligationresultingfrom
aloanofmoneyconsistsinthesumstatedinthecontract,andthedebtormustreturnthe
moneylent,andshallmakethatamountinthecoincurrentattimeofpayment.39However,
bothCourdeCassationandConseilConstitutional,withtheirdecisions,erodedtheoriginal
centralityoftheprinciple,inordertoprotectcreditor’sinterestsespeciallyintimeofhigh
inflation40
A statutory definition is available for electronic money: “La monnaie électronique est une
valeur monétaire qui est stockée sous une forme électronique, y compris magnétique,
représentant une créance sur l'émetteur, qui est émise contre la remise de fonds aux fins
d'opérationsdepaiementdéfiniesàl'articleL.133-3ducodemonétaireetfinancieretquiest
acceptée par une personne physique ou morale autre que l'émetteur de monnaie
électronique“.41
3.12.2 Remunerationandcontract
UnderFrenchcontractlaw,aremunerationexistswhentheadvantageconferredbyoneof
thepartiestotheotheroneisinterdependedwithanadvantagethatthepartyreceivefrom
the other one. A remuneration may consist in money (see supra) or any other valuable
advantageconferredontheotherparty.
38
G.Cornu,Vocabulairejuridique,AssociationHenriCapitant.
Art.1895:“L'obligationquirésulted'unprêtenargentn'esttoujoursquedelasommeénoncéeaucontrat.S'ilyaeu
augmentationoudiminutiond'espècesavantl'époquedupaiement,ledébiteurdoitrendrelasommeprêtée,etnedoit
rendrequecettesommedanslesespècesayantcoursaumomentdupaiement.”
40
Cons.const.16janv.1982.
41
Loi n° 2013-100 du 28 janvier 2013 portant diverses dispositions d'adaptation de la législation au droit de l'Union
européenneenmatièreéconomiqueetfinancière
39
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Insuchacase,wheneachparties’obligationisdependentontheobligationoftheother,there
isaninterdependenceofthecontractualperformances.Itfollowsthatalegalactionforthe
resolutionofthecontractcanbeissued,onthegroundoftheotherparty’snon-performance
(actionenresolution).42
Reciprocityiswhatdefineacontractas“bilateral”,meaningthattheconferralofanadvantage
injustifiedbya“remuneration”bytheotherparty.Asynallagmatic(bilateral)contractisa
contractthatcreatesreciprocalobligationsonbothparties,andeachofthemhavereciprocal
andinterrelatedrightsanddutiesarisingfromthecontract.43
Arelateddistinctionistheonebetweencontratàtitreonéreuxandcontratàtitregratuit.44
Thepresenceorabsenceofanintentiontoreceiveareciprocaladvantageisatthebasisof
thisdistinction.Inthefirsttypeofcontractonepartyconfersanadvantage(i.e.aright)onthe
other party, while obtaining a reciprocal advantage for herself; in the second one, an
advantageisconferredbyoneofthetwopartieswithnointentiontoobtainanadvantage
(intention libérale). As for the terminology, contracts for gratuitous services are usually
referredascontratdebienfaisanceorcontratdésintéressés.45
The last potentially relevant feature of French contract law is the distinction between
nominateandinnominatecontracts.TheFrenchcivilcodelistsanumberof“named”contracts
(contrats nommés), providing specific rules for each of them. At the same time, it also
acknowledgesthatpartiesarefreetomakeothercontracts(contratsinnomés),followingthe
principleofautonomyofthewill.Inthissecondcase,thecontractmustfirstbe“qualified”by
42
Art.1184c.c.:“Laconditionrésolutoireesttoujourssous-entenduedanslescontratssynallagmatiques,pourlecasoùl'une
desdeuxpartiesnesatisferapointàsonengagement.Danscecas,lecontratn'estpointrésoludepleindroit.Lapartieenvers
laquelle l'engagement n'a point été exécuté, a le choix ou de forcer l'autre à l'exécution de la convention lorsqu'elle est
possible,oud'endemanderlarésolutionavecdommagesetintérêts.Larésolutiondoitêtredemandéeenjustice,etilpeut
êtreaccordéaudéfendeurundélaiselonlescirconstances.”
43
Art. 1102 c.c.: “Le contrat est synallagmatique ou bilatéral lorsque les contractants s'obligent réciproquement les uns
enverslesautres.”Art.1104c.c.:“Ilestcommutatiflorsquechacunedespartiess'engageàdonnerouàfaireunechosequi
estregardéecommel'équivalentdecequ'onluidonne,oudecequ'onfaitpourelle.Lorsquel'équivalentconsistedansla
chancedegainoudepertepourchacunedesparties,d'aprèsunévénementincertain,lecontratestaléatoire.”
44
Allsynallagmatic(bilateral)contractarecontratàtitreonéreux.
45
Art.1105c.c.:“Lecontratdebienfaisanceestceluidanslequell'unedespartiesprocureàl'autreunavantagepurement
gratuit.”;art.1106c.c.:“Lecontratàtitreonéreuxestceluiquiassujettitchacunedespartiesàdonnerouàfairequelque
chose.”
30
IMPULSEPAPERNO.02
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acourt,inordertodeterminewhetheritfallswithintherealmofnominatecontract:asa
result,thecourtmaydecidethatthecontractisakintoonespecificnominatecontractorthat
itcompriseselementsofseveralnominatecontracts,interpretingitaccordinglyandapplying
therelateddiscipline.46
3.12.3 QualificationofhomeswapunderFrenchlaw
Homeexchange/swapisthetemporarypeertopeerexchangeofhomes,usuallyforholidays.
TheseagreementsarenotregulatedunderFrenchlaw.
Absentaspecificsetofrules,homeswapoftentakestheformofadetailedwrittenagreement
between two parties to swap their homes for a given period of time, although verbal
agreementsarealsofrequent.Theexchangecanbesimultaneous,whenittakesplaceinthe
sameperiod,oritcanoccurindifferentmoments.Inthislattercase,theexchangesystemif
oftencoupledwithacreditsystemthatcanberedeemedatalaterdate,solesseningpotential
schedulingproblemsthatcanhamperstraighthomeswaps.Usuallynomonetaryexchange
takesplace.
Following the above mentioned distinctions, home swap can be seen as an innominate
(contratinnomé),synallagmatic(bilateral)contract,wherebothpartiesconferadvantageson
theotherone,whileobtainingareciprocaladvantageforthemselves;anditisanonerous
contract,sincebothpartieshavetheintentiontoconfersuchanadvantageinexchangefora
reciprocaladvantage.
The contract template most commonly proposed by platforms is usually based on “prêt à
usage”(or“commodat”).Accordingtoarticle1875,CodeCivil,“leprêtàusageoucommodat
estuncontratparlequell'unedespartieslivreunechoseàl'autrepours'enservir,àlacharge
par le preneur de la rendre après s'en être servi”. In other cases, the contract template
proposedinbasedonéchang(barter).Accordingtoart.1702,CodeCivil,“L'échangeestun
46
Art.1107c.c.:“Lescontrats,soitqu'ilsaientunedénominationpropre,soitqu'ilsn'enaientpas,sontsoumisàdesrègles
générales,quisontl'objetduprésenttitre.Lesrèglesparticulièresàcertainscontratssontétabliessouslestitresrelatifsà
chacund'eux;etlesrèglesparticulièresauxtransactionscommercialessontétabliesparlesloisrelativesaucommerce.”
31
IMPULSEPAPERNO.02
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contratparlequellespartiessedonnentrespectivementunechosepouruneautre”.Inthis
caseruleslaiddownforpurchasecanalsobeapplied.47Butnocourtdecisionhasbeenfound
thatlegallydefinesthiskindofcontract.
Outsidecontract,tortiousliabilityalsoapplies.Despitetheabsenceofmoney,potentialrisks
connectedtothiskindofexchangearenotnegligible,andonlineplatformsplayanimportant
role in guaranteeing the fairness of the exchange and the prevention and/or resolution of
disputes; platforms may require prior registration of the parties, check parties’ reliability,
providepenaltiesincaseofbreach/damages,andrecommendtotakeupinsurance.Platforms
mayalsoprovidedetailedguidanceonhowtoarrangeaswaporevenarrangeit.However,
mostplatformsdonotacceptresponsibilityfordamagesassociatedwithanyexchange.
3.13 Primaryandsecondaryresidence,changeofuseandprofessionalism
Rentingafurnishedlodgingrepeatedlyforshortperiodstotransientguests,whodonotelect
theirdomicileinthelodging,isdeemedasachangeintheuseunderFrenchlaw.48However,
the legal regime for such a change differs from place to place, ranging from no formal
requirementatalltocommunicationor-insomecases-authorizationregimeand,inthis
latter case, compensation. Even more important, an exception applies in both cases
(communicationandauthorizationwithcompensation)whenthehousingpremiseisthemain
residenceofthelandlord:inthiscasethecommunicationorauthorizationtochangetheuse
isnotnecessaryandnoformalityapplies,inordertorentthepremisesforshortperiodsto
transientguestswhodonotelectdomicile.49
Thisregulationaimsatlimitingrentalsofresidentialpremisesforshortperiods,inordernot
toaggravatetheshortageofhousing.Forthisreason,exceptionsincaseofprimaryresidence
areprovided,inconsonancewiththeallegedrationalefortheserules.
47
Art.1707,Codecivil:“Touteslesautresrèglesprescritespourlecontratdeventes'appliquentd'ailleursàl'échange.”
Art.L631-7,Codedelaconstructionetdel'habitation:“Lefaitdelouerunlocalmeublédestinéàl'habitationdemanière
répétéepourdecourtesduréesàuneclientèledepassagequin'yélitpasdomicileconstitueunchangementd'usageausens
duprésentarticle.»
49
ArticleL631-7-1Aalinéa5,CodedeConstructionetd'Habitation;Art.L324-1-1CodeduTourisme.
48
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TheobjectiveofFrenchregulationonthechangeofuseofresidentialpremise,andespecially
ofthesystembasedoncompensation,isnottoworsenthelackofhousingincitieslikeParis,
and also to take into account social diversity and to balance housing and employment in
different neighborhoods of Paris, in accordance with local housing program and the local
developmentplaninforceinParis.50
Sincerésidenceprincipaleistheresidenceofthelandlordforatleasteightmonthsperyear,
nodwellingisthussubtractedtothemarketbyrentingitoutoccasionally,noritsdestination
asshorttermrentaltotransientguestsforalimitedtimehavethepotentialtoaggravatethe
shortageofhousing.51
Leavingasidethequestionaswhethertheserulesamounttoaprohibitedrestrictionunder
EUlaw(seeinfra),followingthislineofreasoningthedifferentlegaltreatmentforprimary
andsecondaryresidencedoesnotamounttoadifferentlegalqualificationforthosewhorent
thedwelling,asprofessionalsornot.Noritintendtodefineshorttermsrentalsofsecondary
residenceasaprofessionalactivity.Itisinsteadawaytofacethelackofhousing,limitingitto
a temporary use of dwelling primarily devoted to residence, unless an authorization or
communicationisprovided,mainlyfortheprotectionofurbanenvironment.
3.14 Conclusions
InParistheshort-termrentaloftheprincipalresidencebyanindividualislegalandoffersan
alternative kind of accommodation for tourists. However, a residence dedicated solely to
short-termleasingrequiresachangeofusefromresidentialtomeublésdetourisme.Inthis
case,anauthorizationisneededandtheownermustcompensateforthecommercialusage
bycreatingacomparablefurnishedresidentialproperty.
50
http://www.paris.fr/services-et-infos-pratiques/urbanisme-et-architecture/demandes-d-autorisations/exercer-uneactivite-dans-un-logement-172#autorisation-3-le-changement-d-usage-a-caractere-reel-avec-compensation_5.
51
http://www.paris.fr/services-et-infos-pratiques/urbanisme-et-architecture/demandes-d-autorisations/exercer-uneactivite-dans-un-logement-172#autorisation-3-le-changement-d-usage-a-caractere-reel-avec-compensation_5.
33
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Whereas in most French cities, a declaration to the city where the premise is located is
mandatoryinordertorentameublésdetourisme,inParisaswellasinmosttouristicplace
an authorization issued by City Hall is required. The authorization to change the use of a
dwelling is issued by the mayor of the city where the property is located. When an
authorizationisrequired,acompensationmaybeasked.Conditionsforcompensationareset
bythemunicipalities.Whenauthorizationissubjecttocompensation,itoftentakestheform
of the concomitant transformation into housing premise of other premises having a use
differentfromresidential.
Partial exceptions to these rules apply when the dwelling is the primary residence of the
lessor, i.e. is the place where she lives at least eight months a year. In this case, no
communication and/or authorization is mandatory. When the premise is the principal
residenceofthelessor,thecommunicationorauthorizationtochangetheuseisnotnecessary
torentforshortperiodstotransientguestswhodonotelectdomicile.52
Adeparturefromtheruleispossiblefortemporarychangesofdestination.Aresolutionof
themunicipalcouncilmaysetatemporaryauthorizationregimechangeinuseofallowingan
individualtorentforshortperiodsofpremisesforhousingtotransientguestswhodonot
electdomicile.
3.15 Legaltexts
- Code du tourisme : articles L324-1 à L324-2-1 (Classement et déclaration en mairie des
meublésdetourisme)
- Code du tourisme : articles D324-1 à R324-1-2 (Définition et déclaration en mairie des
meublésdetourisme)
52
ArticleL631-7-1ACrééparLOIn°2014-366du24mars2014-art.16.“Lorsquelelocalàusaged'habitationconstituela
résidenceprincipaleduloueur,ausensdel'article2delaloin°89-462du6juillet1989tendantàaméliorerlesrapports
locatifsetportantmodificationdelaloin°86-1290du23décembre1986,l'autorisationdechangementd'usageprévueà
l'articleL.631-7duprésentcodeoucelleprévueauprésentarticlen'estpasnécessairepourlelouerpourdecourtesdurées
àuneclientèledepassagequin'yélitpasdomicile.”
34
IMPULSEPAPERNO.02
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-Codedutourisme:articlesD324-2àD324-6-1(Procéduredeclassementdesmeublésde
tourisme)
-Codedutourisme:articlesR324-7àR324-8(Sanctionsencasdedéfautouinsuffisancegrave
d'entretiendumeubléetdesesinstallations)
- Code de la construction et de l'habitation : articles L631-7 à L631-9 (Autorisation de
changementd'usaged'unbienimmobilier)
- Arrêté du 2 août 2010 fixant les normes et la procédure de classement des meublés de
tourisme
-Arrêtédu6décembre2010relatifauxorganismesdecontrôledesmeublésdetourisme
35
IMPULSEPAPERNO.02
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4
ITALY.ROME,MILAN
4.1
TaskI-Identificationoftheexistingrules
First, identify the national, regional or local rules and administrative practices (related for
example to the functioning of the registry) that apply and regulate the above-mentioned
activitiesbothforprovidersoftheassets(rooms,apartments,etc)forhome-sharingorshorttermrentalsandhomeswapping,andtheonlineplatformsoffering/advertisingthoseassets.
4.2
Thecollaborativeeconomy
InItalythereisnogenerallawoncollaborativeeconomy.However,abillhasbeenpresented
in Parliament in March 2016, whose aim is to define the collaborative economy in a
comprehensiveway.ThisbillwillbejointlydiscussioninconsultationwithcitizensuntilMay
31st2016.53Thedraftbill–AttoCamera3564–Propostadilegge.Disciplinadellepiattaforme
digitaliperlacondivisionedibenieserviziedisposizioniperlapromozionedell’economiadella
condivisione - is described by the promoters as the first law on collaborative economy in
Europe.
Despite the comprehensive definition, the draft address only few issues related to the
emergence of the collaborative economy. Among other things, it delegates to the Italian
competitionauthority(Autoritàgarantedellaconcorrenzaedelmercato–AGCM)thetaskof
controllingthecollaborativeplatformsandtokeepapublicRegisteroftheseplatforms(art.
3).Italsoprovideaflatratetaxationforupto10,000eurosforpeersoperatingthroughthese
collaborativeplatforms(art.6).Theadoptionofrulesforadoptingcollaborativepracticesin
thePublicadministrationisalsostronglysupported(art.8).
53
http://www.makingspeechestalk.com/ch/comment_sea/?id_speech=45#sthash.VvLDRO9h.dpuf.
36
IMPULSEPAPERNO.02
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4.3
Theaccommodationsector
Italyisoneofthebiggestmarketinshort-termrentals.Romehasmorethanfifteenthousands
Airbnblistings54;morethansixthousandsarelistedinMilan55andFlorence56andmorethan
three thousands in Venice.57 In all these cases the overall majority of listings are entire
homes/apartments,therestbeingprivateorsharedrooms.
4.3.1 State,RegionsandMunicipalities
EvenifinItalythereisnogenerallawoncollaborativeeconomy,boththeaccommodation
andthetourismsectorsareheavilyregulated.Asaresult,therearedifferentlayersofasectorspecificlegislationforpeer-to-peeraccommodationatnational,regionalandlocallevel,and
amultiplicityofsourcesregulatestheuseofpremisesfortourism.
The relative weight of each of these layer also depends on how the peer-to-peer rental is
framed:asnormallease,regulatedalmostexclusivelybytheItaliancivilcode,orastourism
accommodation,whoseregulationisattributedbytheItalianConstitutiontoRegions.Inorder
to clarify the discipline applicable to short-term accommodation is important to make this
distinctionassharpaspossible.
4.3.2 ItalianConstitutionandnationallegislation
BeforetherevisionofItalianConstitutionthattookplacein2001,tourismwasenumerated
asasectorsubjectto“concurrent”regionallegislation,whichindicatedthatRegionscould
ruleonthesetopics“withinthelimitsofgeneralprincipleslaiddownbyStatelaw”(art.117
Cost.).Thesegeneralprincipleswereusuallyindicatedinso-called“leggiquadro”(framework
laws).
54
https://www.google.com/fusiontables/DataSource?docid=1-uiwK02QTS3QJ51mO1TXZ7k7rh97cpZYrSYaWzCi#map:id=3
https://www.google.com/fusiontables/DataSource?docid=1wcoUv2XNMJ_5e7wvhdz0WZoVy0GgzrZ5t1mb4A1#map:id=3
56
https://www.google.com/fusiontables/DataSource?docid=17DKSbohThHL-Mt1UOEXFpFH3fSzYRxtp7vOPJHg7#rows:id=1
57
http://insideairbnb.com/venice/
55
37
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Inapplicationofthisconstitutionalprinciple,aspecificlegalframeworkwasfirstsetinplace
bynationallawwithLegge17maggio1983,n.217and,later,withLegge29marzo2001,n.
135(thatrepealedLegge17maggio1983,n.217).
Aftertheconstitutionalamendmentsin2001(Legge3/2001),tourismisnowoneofthesocalled“residual”subjects,meaningthatthelegislativepowerisvestedinRegionswithnoneed
ofnationallawssettinggeneralprinciples(so-called“frameworklaws”,art.117,co.4,Const.).
Nonetheless,anewspecificlegalframeworkwasfirstsetinplacebynationallawwiththe
newnationalCodicedelturismo(CodeofTourism-Decretolegislativon.23.5.2011,n.79),
thatprovidesageneralbasisforregionalregulation,whichsetsdowngeneralprinciplesin
thefieldoftourismandhotelindustry.58
Il presente codice reca, nei limiti consentiti dalla competenza statale, norme necessarie
all'esercizio unitario delle funzioni amministrative in materia di turismo ed altre nome in
materiariportabiliallecompetenzedelloStato,provvedendoalriordino,alcoordinamentoe
all'integrazione delle disposizioni legislative statali vigenti, nel rispetto dell'ordinamento
dell'Unioneeuropeaedelleattribuzionidelleregioniedeglientilocali(art.1,co.1).
The need for a national framework even after the constitutional change of 2001 is usually
justifiedbytheneedtohaveacoherentandsystematiclegislationamongdifferentItalian
regions in a strategic field such as tourism. Despite this current justification, this piece of
legislation has been partially dismantled, since in 2012 the Italian Constitutional Court
repealednearlyallTitleIII(arts.8-17)oftheCodeofTourismonthegroundthatitviolated
thelegislativepowersattributedbytheConstitutiontoRegions.59
4.3.3 Regionalandmunicipalcompetence
InaccordancewiththeCodeofTourism,whichassignstoRegionsthecompetencetolegislate
inthefieldoftourism,mostItalianRegionspromulgatedlawsthatenumerateandclassify
58
59
CodeofTourismrepealedbothLegge17maggio1983,n.217and,later,withLegge29marzo2001,n.135.
ConstitutionalCourt,Decision2-5April2012,n.80(inG.U.1as.s.11/4/2012,n.15).
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IMPULSEPAPERNO.02
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hotelandnon-hoteltouristaccommodationwithdisparatesolutionsthatvaryconsiderably
fromaregiontoanother(seeinfra).
Inadditiontoregionallaw,eachmunicipality-especiallythebiggestandmosttouristicones
- adopted their own regulation to control tourist rentals, i.e. implementing tourist tax, or
requiring registration in a special municipal register for tourist locations. Administrative
functions are also attributed to Municipalities, unless they are conferred to provinces,
metropolitancities,regionsandstates,inordertoensureuniformitybasedontheprinciples
ofsubsidiarity,differentiationandadequacy(art.118,1par.,Const.).
Le funzioni amministrative sono attribuite ai Comuni salvo che, per assicurarne l’esercizio
unitario,sianoconferiteaProvince,Cittàmetropolitane,RegionieStato,sullabasedeiprincipi
disussidiarietà,differenziazioneedadeguatezza.(Art.118,co.1,Cost.).
4.3.4 Thecivilcode
While regional legislative competence concerns the exercise of touristic activities, regular
leasesfortouristpurposesaresubjecttonationallaw,accordingtoArt.117,par.2,lett.i),
Cost.,thatprovidesthatthestatehasexclusivelegislationincivillawissues.Infact,residential
leasesfortourismpurposes-vacationhomesandapartments–aredeemedasaregularlease
agreementbyart.1571ff.oftheCivilCode.Sincethetouristicleaseisjustonekindoflease
contractexpresslyprovidedforbytheCivilCode,theprimarysourceofregulationisaspecial
sectionofthetheCivilCodedevotedtorentalagreements(art.1571ff.).Instead,contracts
for tourist use are subtracted to the national Law 9 December 1998, n. 431, on rents and
releaseofbuildingsforresidentialuse,sincetouristleasearenotregardedastouristlease,
whosetermsandconditionsarelaiddownbyarticle5ofthelaw431/1998(Legge9dicembre
1998,n.431).
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IMPULSEPAPERNO.02
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4.4
Atwo-tracksregime
4.4.1 Touristicleaseandthecivilcode
Asmentionedabove,avacationhomecanberentedwitharegularshort-termlease.Incase
of“touristlease”or“purelease”,articles1571etseq.oftheCivilCodeapply(cfr.Art.53,
Codeoftourism).
Whereas the pertinent discipline for tourist lease is laid down by the Italian civil code, all
national special legislation passed since the Seventies to regulate the housing market and
rentalagreementsdonotpertain.Thisdiversedisciplineisusuallyjustifiedbythelackinthe
touristicleaseofthoseemergenciesthatleadedtospecialrulesinhousingmarket(housing
shortage,ecc.).
According to the civil code, the lessee has a duty to: make use of the rented property in
accordancewiththeagreedtermswiththediligenceofareasonableperson(art.1587ofthe
Civil Code); return the rented property in the same condition as received, except for
deterioration due to ordinary use (art. 1590 of the Civil Code); respect the rules of good
neighborlinessandthebuildingcode.Further,thelesseeisalsoresponsibleforanydamage
thatsheshouldcausetoproperties,furnitureandplantsduringthetermofthecontract.The
landlordhasadutyto:deliverandmaintainthething“sotopreserveitsdestination”(art.
1575oftheCivilCode);andmakenecessaryrepairs,exceptthoseofsmallmaintenance(art.
1576oftheCivilCode).
Inordertodefineacontractasordinarylease,thehousecanberentedonlywith“ordinary
facilities” (i.e. furniture), without providing additional services. In practice, however, the
conferralofamandatetoanestateagencymayallowthedeliveryofadditionalservicesby
thirdparties,withoutchangingthenatureofthecontract.Inthisway,theoperationofahotellike tourist accommodation business cannot be attributed to the owner, and formalities
requiredforrunningabusinessarenotdue.
4.4.2 Otherrulesapplicabletotouristiclease
The lessor offering a touristic dwelling as “tourist lease” or “pure lease” is subject to the
followingrequirement:
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1) Registration (“registrazione”) to Inland Revenue Office, when the rent is longer than 30
days;60
2)IfguestareEUcitizens,CommunicationtoP.S.Authorityabouttheidentityofthepeople
lodgingintherentedpremise.61Thismeansthatatwo-standardregimeapplies,withregards
tothiscommunication:a)CommunicationtoP.S.Authorityisrequiredforrentsforlessthan
30days;b)CommunicationtoP.S.Authorityisnotrequiredforrentslongerthan30days,
sinceregistrationsub1)fulfilthesamefunction.
3)Ifguestsarenon-EUcitizens,a“Declarationofhospitality”addressedto:a)thelocalPolice
station(P.S.Authority);orb)inmunicipalitieswithoutsuchanOffice,toaspecialMunicipal
Office.62Thecommunicationiscompulsory,eveniftherentalagreementhasalreadybeen
registered (see supra 1). It follows that “Declaration of hospitality” for non-EU citizens is
alwaysmandatory,regardlessthelengthofthestay;
4)ACommunicationtothebuildingmanageraboutgueststemporarilylivingintheapartment,
inordertokeepthecondominiumpopulationregisterupdated.63
Art.1130CivilCode-Attribuzionidell'amministratore
L'amministratore,oltreaquantoprevistodall'articolo1129edallevigentidisposizionidilegge,
deve:
curare la tenuta del registro di anagrafe condominiale contenente le generalità dei singoli
proprietariedeititolarididirittirealiedidirittipersonalidigodimento,comprensivedelcodice
fiscaleedellaresidenzaodomicilio,idaticatastalidiciascunaunitàimmobiliare,nonchéogni
datorelativoallecondizionidisicurezzadelleparticomunidell’edificio.ognivariazionedeidati
deve essere comunicata all'amministratore in forma scritta entro sessanta giorni.
L'amministratore,incasodiinerzia,mancanzaoincompletezzadellecomunicazioni,richiede
con lettera raccomandata le informazioni necessarie alla tenuta del registro di anagrafe.
60
Legge04/08/2006,n.248;D.P.R.26/04/1986,n.131;D.L.22/06/2012,n.83.
Art.109ofTULPS-RoyalDecreeno.773of18June1931.Circularno.4023of26June2015,issuedbytheInteriorMinistry,
clarifiedthatArt.109ofTULPS(RoyalDecreeno.773of18June1931),applicabletotheentrepreneurialmanagementof
touristicpremises,alsoappliestothosewhorenttheirpropertiesforshortperiodsoflessthan30days.
62
Art.7,D.Lgs.286/98.
63
Art.1130,co.1,6,Civilcode.
61
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Decorsitrentagiorni,incasodiomessaoincompletarisposta,l'amministratoreacquisiscele
informazioninecessarie,addebitandoneilcostoairesponsabili.
Touristleaseentailstheconclusionofawrittencontractbetweenthepartiesonlyifthelease
islongerthan30days.Ifthedurationoftheleasedoesnotexceed30days,“registration”is
notrequiredandleaseisnotsubjecttoTaxOfficeregistration.Asaresult,thecontractmust
beinwrittenformandissubjecttocompulsoryregistrationonlywhenthedurationofthe
contractexceedsonemonth.
Thesameholdsincaseofseveraldifferentleasesduringtheyear.Incaseofmultipleguests,
thisentailsjusttheconclusionofapluralityoflocationsofthepropertyforalimitedtimefor
holidayandrecreationpurposes.
4.4.3 Regionallegislationand“nonhotelaccommodation”
Shorttermrentalscanbeframedbothastouristrental(pureleases)oras“non-hoteltouristic
activity”.Whileintheformercasethecivillawapplies,inthelattercaseregionallegislation
forhospitalityandpremisesclassificationandauthorisationapplies,togetherwithnational
legislationontourism.
With the national constitutional reform that took place in 2001 this competence is now
regional.However,theCodeoftourismlistsdifferenttypesofaccommodationinorderto
provideaminimumnationalstandardthateachregionhastofollowinitslegislation(whereas
itisstillpossibletosetbetterstandardsatregionallevel).64
Art. 12 of Code of tourism provides a list of non-hotel accommodations: a) room rental
(“affittacamere”);b)bedandbreakfast;c)holidayhomes;d)furnishedhousingfortourist;e)
residence;f)youthhostels;g)accommodationincateringpremises;h)farm(“agriturismi”);i)
ruralresidences;l)guesthouses;m)studenthouses;n)historicalresidences;o)hikingshelters;
64
Inthepast,art.7,L.217/1983statedthattheclassificationofaccommodationservicesisdecidedbyeachregiononthe
baseofthreestandards:dimensionofthepremise;servicesoffered;professionalskillsofthoserunningthepremise.This
provision was complemented with D.P.C.M. 13.9.2002 for the definition of uniform standards across the different Italian
regions.
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p)mountainhuts;q)anyothertouristaccommodationrelatedtooneormoreofprevious
categories.
Thesamearticleprovidesadetaileddescriptionofeachofthesecategories.
Art.12-Strutturericettiveextralberghiere
1.Aifinidelpresentedecretolegislativo,nonchéaifinidell'eserciziodelpotereamministrativo
statale di cui all'articolo 15, sono strutture ricettive extralberghiere: a) gli esercizi di
affittacamere;b)leattivitàricettiveaconduzionefamiliare-bedandbreakfast;c)lecaseper
ferie;d)leunitàabitativeammobiliateadusoturistico;e)lestrutturericettive-residence;f)
gli ostelli per la gioventù; g) le attività ricettive in esercizi di ristorazione; h) gli alloggi
nell'ambitodell'attivitàagrituristica;i)attivitàricettiveinresidenzerurali;l)leforesterieper
turisti; m) i centri soggiorno studi; n) le residenze d'epoca extralberghiere; o) i rifugi
escursionistici;p)irifugialpini;q)ognialtrastrutturaturistico-ricettivachepresentielementi
ricollegabiliaunoopiùdelleprecedenticategorie.
Thedistinctionbetweennon-hotelaccommodationandhotelaccommodationisrelevantnot
onlyasaclassificationbutalsoforthepowersthepublicauthoritycanexercise.Non-hotel
accommodationsaresubjecttominimumnationalstandardssetupinanAgreementamong
StateandRegionsandtheyarenotsubjecttotheratingsystem(onetofivestars)usedfor
hotelsatnationallevel.
4.4.4 Segnalazionecertificatadiinizioattività"–SCIAfornon-hotelaccommodation
TouristCodeprovideageneralframeworkfortheprovisionoftouristicservicesinItaly,stating
thataPriornotice(“Segnalazionecertificatadiinizioattività”-SCIA)issufficienttostartan
activity,withnoneedofapriorauthorisation.Theso-calledSCIAmustbedirectedtothelocal
CityCouncil,enclosingthecommunicationofthebeginningoftheactivity(tothe“Sportello
unicoperleattivitàproduttive”–SUAP-or“Sportellounicoperleattivitàricettive”-SUAR-
whenexistinginthemunicipalitywherethepropertyislocated).
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Art.16,Codeoftourism,providesthattheopeningandoperationoftouristicaccommodation
aresubjecttotheSCIA.Theactivitycanbestartedrightafterthesubmissionoftherequired
communicationhasbeenissuedtothePublicauthority.WhenthePublicAuthorityascertains
thattheactivitydoesnotcomplywithlegalrules,itcanadoptsubsequentdecisionbysixty
daysfromthecommunication.Inanycase,theactivityremainssubjecttocompliancewith
zoning regulations, building codes, environmental rules, public security, fire prevention,
sanitationandsafetyintheworkplace,aswellasrulesonenergyefficiencyandprovisionsof
theCodeofculturalheritageandthelandscape.
Art.16(Semplificazionedegliadempimentiamministratividellestruttureturistico-ricettive)
L'avvioel'eserciziodellestruttureturistico-ricettivesonosoggettiasegnalazionecertificata
diinizioattivitàneilimitieallecondizionidicuiall'articolo19dellalegge7agosto1990,n.
241.
L'attivitàoggettodellasegnalazione,dicuialcomma1,puòessereiniziatadalladatadella
presentazionedellasegnalazioneall'amministrazionecompetente.
L'avvio e l'esercizio delle attività in questione restano soggetti al rispetto delle norme
urbanistiche, edilizie, ambientali, di pubblica sicurezza, di prevenzione incendi, igienicosanitarieedisicurezzaneiluoghidilavoro,nonchéquellerelativeall'efficienzaenergeticae
delle disposizioni contenute nel codice dei beni culturali e del paesaggio, di cui al decreto
legislativo22gennaio2004,n.42.
Seealsoart.19,co.1,L.241/1990:
Ogni atto di autorizzazione, licenza, concessione non costitutiva, permesso o nulla osta
comunque denominato, comprese le domande per le iscrizioni in albi o ruoli richieste per
l'esercizio di attività imprenditoriale, commerciale o artigianale il cui rilascio dipenda
esclusivamente dall'accertamento di requisiti e presupposti richiesti dalla legge o da atti
amministrativiacontenutogenerale,enonsiaprevistoalcunlimiteocontingentecomplessivo
ospecificistrumentidiprogrammazionesettorialeperilrilasciodegliattistessi,èsostituitoda
una segnalazione dell'interessato, con la sola esclusione dei casi in cui sussistano vincoli
ambientali,paesaggisticioculturaliedegliattirilasciatidalleamministrazioniprepostealla
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difesa nazionale, alla pubblica sicurezza, all'immigrazione, all'asilo, alla cittadinanza,
all'amministrazione della giustizia, all'amministrazione delle finanze, ivi compresi gli atti
concernenti le reti di acquisizione del gettito, anche derivante dal gioco, nonché di quelli
previstidallanormativaperlecostruzioniinzonesismicheediquelliimpostidallanormativa
comunitaria.65
Thiscommunicationisissuedonlinetoc.d.“Sportellounico”(SUAP),inapplicationofart.38
Decreto-legge25giugno2008,n.112(conv.L.6.8.2008,n.133;D.P.R.7.9.2010,n.160).Art.
109 of TULPS (Royal Decree no. 773 of 18 June 1931) further establishes a duty to
communicatetheidentityofthepeoplelodging,applicabletothemanagementinbusiness
formoftouristicforprofitactivitiestotheP.S.Authority.Inthiscase,registrationofguests
may
be
done
only
via
online
channel
“Alloggiati
Web”
(https://alloggiatiweb.poliziadistato.it/PortaleAlloggiati/).
4.5
Accommodationasbusinessornon-businessactivity
Shorttermrentalsarepotentiallyregulatedbydisparatesourcesoflaw,dependingonthe
classificationoftheeconomictransactionastouristicrentalornon-hoteltouristactivity.This
distinctionisextremelyrelevant:notonlyforthelegalregimevariations,duetothedifferent
classifications,butalsobecauseState,RegionsandMunicipalitieshavedifferentrolesinthe
twocases.
CodeofTourismdefines“touristundertakings”asthoseundertakingsthatcarryoutorganized
economic activities for the production, marketing, brokerage and management of touristic
products and services. The registration of these undertakings in the Public register (as
prescribedbyLegge29.12.1993,n.580andD.P.R.7.12.1995,n.581),isanessentialcondition
fortheaccesstobenefits,contributions,grants,incentivesandbenefitsofanykindforthe
tourism.
65
See also Law 30 July 2010, n. 122 (“Conversione in legge, con modificazioni, del decreto-legge 31 maggio 2010, n. 78,
recantemisureurgentiinmateriadistabilizzazionefinanziariaedicompetitivitàeconomica
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Among“tourismundertakings”,themostimportantoneare“touristicaccommodations”.The
expression “touristic accommodation” defines the activities aimed at the production of
services for the hospitality (art. 8, Code of Tourism). In addition, art. 53 of Tourism Code
(Decreeno.23.5.2011,n.79)definestouristlocationsas“thepropertydevotedexclusivelyto
tourismpurposes,locatedinanyplace”.66
Sinceprivatelawispartofnationallegislationandtourismispartofregionallegislation,the
definitionofa“touristundertakings”undertheCodeofTourismisonlyrelevantforpubliclaw
purposes, such as the capacity to be recipient of funding for tourism or being subjects to
controlsbypublicbodiesforsafetyorsecurityreasons,butdoesnotaffectthequalification
of a legal person as “undertaking” for private law purposes. Under private law, an
entrepreneur exercises her activity “habitually” and “professionally”, and this definition
leavesasidethosewhoexerciseaneconomicactivityoccasionallyornotprofessionally,such
asasmallfamily-ownedtouristicpremise.Inthiscases,suchanactivityisdeemedtobean
undertakingforpubliclawpurposes,butnotforprivatelaw.Andatouristicpremisecanbe
managedinbothanentrepreneurialandnon-entrepreneurialway.
4.6 Classificationsanddefinitionsoftouristicleaseand“non-hotelaccommodation”
4.6.1 Thepresenceofadditionalservices
Afirstdistinguishingcriterionbetweentouristicleaseandnon-hotelaccommodationisbased
on whether additional services are offered. The tourist lease differs from non-hotel
accommodation,suchasholidayhomesorbedandbreakfast,becauseintheformercasea
privatepartyrentsoutaroomorapartmentwithoutofferinganyadditionalservices(suchas
daily cleaning, change of linen, catering services, breakfast, ironing, etc.). In these cases,
guestsmustbeinformedthattheapartmentdoesnothaveanyofferedservice.
66
Art.53,CodeofTourism:“Glialloggilocaliesclusivamenteperfinalitàturistiche,inqualsiasiluogoubicati,sonoregolati
dalledisposizionidelcodicecivileintemadilocazione”.
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Onthecontrary,ifinadditiontothepropertyancillaryservicesarealsoprovided,anon-hotel
accommodationisrealisedwithconsequentialobligations.Whenatouristicaccommodation
isrunasaprofessionalactivity,thosewhorentstheapartmenthaveanobligationtoprovide
additionalservicesthatgobeyondthemereleasingofthehousewithordinaryequipment.
Nell’ambitoditaleattivitàrientraaltresì,unitamenteallaprestazionedelservizioricettivo,la
somministrazionedialimentiebevandeallepersonealloggiate,ailoroospitiedacoloroche
sono ospitati nella struttura ricettiva in occasione di manifestazioni e convegni organizzati,
nonché la fornitura di giornali, riviste, pellicole per uso fotografico e di registrazione
audiovisivaostrumentiinformatici,cartolineefrancobolliallepersonealloggiate,nonché́ la
gestione,adusoesclusivodidettepersone,attrezzatureestruttureacaratterericreativo,per
lequalièfattasalvalavigentedisciplinainmateriadisicurezza.Nellalicenzadieserciziodi
attivitàricettivaèricompresaanchelalicenzaperlasomministrazionedialimentiebevande
per le persone non alloggiate nella struttura nonché, nel rispetto dei requisiti previsti dalla
normativa vigente, per le attività legate al benessere della persona o all'organizzazione
congressuale.67
4.6.2 Thelengthofactivity
Asecondelementthatcanhelpseparatingprivaterentfromentrepreneurialactivityisthe
lengthofuse.Asageneralrule,ifthepropertyrentalbusinessworksthroughouttheyearitis
deemedtobenonhotelaccommodation,whereasshorterperiodcanbeseenasoccasional
rent.
However, in order to assess the applicable discipline, different rules must be taken into
account,sotobetterdefinehowthelengthofrentalactivityaffectsthelegaltreatmentof
short term rentals as business or not. A clear-cut description of how the length of activity
affectsthequalificationofshorttermrentalscanbederivedonlybytheconsolidatedreading
ofbothnationalandregionallegislation.
67
Art.8,co.2,CodiceTurismo.
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Atanationallevel,art.12,co.5,CodicedelTurismo,defines“furnishedapartmentsfortourist
use”asthosehousesorapartments,thatfurnishedandequippedwithbothhygienicservices
andindependentkitchenfacilities,rentedouttotourists,duringoneormoreseasons,fora
period of no less than seven days and no more than six consecutive months without the
provisionofanyhotel-likeservice.Thefurnishedapartmentstotouristusecanbemanaged:
a) in business form; b) in a non-business, from those who have the availability of up to a
maximumoffourunits,withoutorganizationintheformofenterprise(emphasisadded).
Leunitàabitativeammobiliateadusoturisticosonocaseoappartamenti,arredatiedotatidi
serviziigieniciedicucinaautonomi,datiinlocazioneaituristi,nelcorsodiunaopiùstagioni,
concontrattiaventivaliditànoninferioreasettegiornienonsuperioreaseimesiconsecutivi
senzalaprestazionedialcunservizioditipoalberghiero.Leunitàabitativeammobiliateauso
turisticopossonoesseregestite:a)informaimprenditoriale;b)informanonimprenditoriale,
da coloro che hanno la disponibilità fino ad un massimo di quattro unità abitative, senza
organizzazioneinformadiimpresa(art.12,co.5,Codiceturismo).
In addition, regional laws regulate time limits for non professional rental activities. This is
usually done either by reference to somehow indefinite categories, such as “occasionally”
(“occasionalmente”) as opposed to “continuously” (“continuativamente”), or by adding
specifictimelimitforeachcategoryofnon-hotelaccommodation.ThetwocasesofLazioand
Lombardiamayhelptobetterclarifythispoint.Onthesameline,mostotherregionallaws
usethistwo-trackregime,byeitherdefiningdiscretetimelimitsorbyusingindeterminate
expressionsforeachclassifiedcategoryofnonhotelaccommodation.
Legge regionale Lazio, n.13, 2007, rules that furnished premises rented to tourists can be
managedasnon-businessforamaximumoftwohouses/apartmentslocatedinoneormore
buildings,rentedonanoccasionalbasis,withaperiodofinactivityofatleastonehundred
daysayear.Whilethesamestatutedeterminesthatb&bmustobserveanonoperatingperiod
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must be equal at least to one 120 days a year in Rome and 90 days in other cities; b) as
business,whentheactivityiscarriedoutcontinuously(emphasisadded).
Lombardia Regional Law of 1 October 2015, n. 27 (Regional policies on tourism and
attractiveness of Lombardy) establishes that “houses and holiday apartments” can be
managedasnon-business,foruptothreeunitsiftheactivityiscarriedoutonanoccasional
basis.Forb&b,thesamestatutedeterminesthatthenonoperatingperiodmustbeequalat
leasttoone90daysayear(emphasisadded).
In sum, in Italy the length of rental activity affects the definition of short term rentals as
businessornot.However,aclear-cutconclusionofhowthiselementimpactsonhowthese
economicactivitiesarequalifiedbythelawcanbereachedonlybytheconsolidatedreading
ofbothnationaland,mostofall,regionallegislation,whichofferdisparatesolutions,either
based on indefinite categories, such as “occasionally” (“occasionalmente”) as opposed to
“continuously”(“continuativamente”),orbyaddingspecifictimelimits(seesupra).
4.7
Taxation
A local tax for tourism (“imposta di soggiorno”) has been created in Italy following the
implementationoffederalismwiththelegislativereformthattookplacein2001.Thistaxis
duebythosewhostayintouristicaccommodationsinbiggercitiesaswellasinthosetouristic
citieslistedinaspecialregionallist.Municipalitiesincludedinaregionallistsofcitiesofart
canestablishatouristtaxpaidbythosestayinginaccommodationinitsterritory.68
Incaseoftouristicrent,earningsreceivedbythelessoraresubjecttopersonalincometaxto
bedeclaredvia“Dichiarazionedeiredditi”(Form730or“Unico”).Therentalincomemustbe
reportedas“Incomefromland”(RBsectionofthemodel).Inthiscasethelessorcanoptfor
regulartaxationoraflatratetax–c.d.“cedolaresecca”.Thisoptionisavailablealsofornon
registeredcontractswhosedurationislessthan30daysayearandflatratecanbeappliedto
theleasesforwhichthereisnoobligationtoregister.However,inthislattercasecontract
68
Art.4,Decreeno.14March2011,n.23.
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mustbeinwriting(art.3co.2D.Lgs.23/2011).Adeductionof15%isallowedonlyif“cedolare
secca” is not applied. Different rules apply in case of “non-hotel accommodation” by
entrepreneurs. In this case, business income tax applies for undertakings carrying out
entrepreneurialactivities.
4.8
Regionallaws.Rome
WithLeggeregionaleLazion.13,2007,newruleshavebeenadoptedtosimplifytheprocedure
for the opening of such a structure.69 Legge regionale n. 8, 2013, confirmed this trend,
prescribingthattheownersofsuchapremisemustcomplywithcertification/authorization
formalitiesthroughtheSCIA.Earlier,apreviousobligationtocommunicatethepriceliststo
the central administration, before applying for the SCIA for the certification/authorization,
wasinforce.
Morerecently,LeggeregionaleLazio7August2015,n.8,on“Newdisciplinefornon-hotel
accommodations”, identifies non-hotel accommodations and their characteristics at a
regionallevel.Amongthem,GuestHouseorHouse(lett.a),housesandapartments(lett.e)
andB&B(lett.f)maybepotentiallyrelevantforthecollaborativeeconomy.Togetherwith
accommodation, SCIA also enables to provide foods and drinks to the lodging people. In
addition,equipmentandtorecreationalfacilities,wherepermitted,canbealsoprovidefor
the exclusive use of guests. In this case, compliance with current regulations on safety,
hygieneandhealthmustberespected(art.14,co.3).
Art.1,co.3.Ledisposizionidicuialpresenteregolamentosiapplicanoalleseguentistrutture:
a) Guest house o Affittacamere; b) Ostelli per la gioventù; c) Hostel o Ostelli; d) Case e
appartamentipervacanze;e)Caseperferie;f)Bed&Breakfast;g)CountryhouseoResidenze
dicampagna;h)Rifugimontani;i)Rifugiescursionistici.
69
L.R.6Agosto2007,n.13,Organizzazionedelsistematuristicolaziale.Modificheallaleggeregionale6agosto1999,n.14-
Organizzazionedellefunzionialivelloregionaleelocaleperlarealizzazionedeldecentramentoamministrativo.
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Anotherimportantprovisionthataffectshort-termrentsandpeer-to-peeractivitiesisart.2,
co.3.,providingthat:“Inordertopromotesafetyandopposeillegaltouristicaccommodation,
withdetrimentofthequalityofthetouristoffer,ownersofpremisesotherthanthoselisted
above, who offer hospitality in private apartments by leasing these premises for tourism
purposes, and those who offer other forms of hospitality through online channels and
marketing promos, shall communicate it to the municipality and to Agenzia regionale del
Turismo(art.2,co.3).
Perfavorirelasicurezzasulterritorioregionaleecontrastareformeirregolaridiospitalitàa
dannodellaqualitàdell’offertaturistica,isoggettititolaridistrutturediversedaquelledicui
alcomma3dell’articolo1cheoffronoospitalitàinappartamentiprivatilocatiperfinituristici
dicuiall’articolo1,comma2,letterac),dellalegge9dicembre1998,n.431(Disciplinadelle
locazioni e del rilascio degli immobili adibiti ad uso abitativo) o coloro che esercitano altre
forme di ospitalità attraverso canali on line di promo commercializzazione, trasmettono al
Comune competente e all’Agenzia di cui al comma 1, idonea comunicazione sull’ospitalità
offertautilizzandol’appositamodulisticaonlinepredispostadalComunestesso.
4.8.1 Nonhotelaccommodations.Regionalclassification
1) Guest house or self-catering facilities are managed professionally when they provide
accommodation and complementary services. These facilities consist of a maximum of six
rooms,locatedinnomorethantwofurnishedapartmentsinthesamebuilding,andaccessible
fromthesameentranceandhave:a)aminimumdimensionof14squaremeters;b)akitchen
orkitchenetteadjacenttothelivingroom.Apartmentsdevotedtoguesthouseorhousesare
notsubjecttochangeofusedestinationforurbanpurposes.Thesefacilitiesmustcomplywith
provisions for residential homes, existing building laws and health and hygiene as well as
minimumfunctionalandstructuralrequirementsdescribedinanAnnextotheLaw(Art.4.1).
2)Housesandapartmentsarefurnishedpremisesrentedtotourists,thatcannothostpersons
thatareresidentordomiciledthere.Thesestructuresdonotprovideanycentralizedservices
andprovisionoffoodsanddrinks.Theycanbemanaged:a)asnon-businessforamaximum
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oftwohouses/apartmentslocatedinoneormorebuildings,rentedonanoccasionalbasis,
with a period of inactivity of at least one hundred days a year; b) as business, when the
managementofoneormorehousesandapartments,placedinoneormorebuilding,takes
place continuously and in an organized manner. Professional management is mandatory if
homes/apartmentsarethreeormore.Thedurationofleasesshallbedetermined:a)inRome,
foraperiodofatleastthreedaysandnolongerthanthreemonths;b)inothercities,fora
maximum of three months. The premise must have a minimum dimension of 14 square
meters,a kitchen or akitchenetteadjacenttothelivingroom. Change ofuseforplanning
purposes is not required. Premises are rented to tourists as a whole and no room can be
reserved to the owner. Facilities shall meet the requirements for residential homes, the
existing building laws and health and hygiene as well as all the functional and structural
minimumrequirementssetoutinAnnextotheLaw(Art.7.1.).
3) Bed and Breakfast are premises that provide hospitality for a maximum of ninety
consecutivedays,withaminimumdimensionof14squaremeterswithkitchenorkitchenette.
Thepersonwhoownstheactivityshallliveinthestructure.Theuseofthestructuretobe
allocated to the activity of B&B does not involve change of use to urban purposes. The
structures can be managed: a) as non-business, when management took place only
occasionallyandthepropertyhasanumberofuptothreebedrooms,withuptosixbeds,and
serviceaccommodationincludesbreakfast.Thenonoperatingperiodmustbeequalatleast
toone120daysayearinRomeand90daysinothercities;b)asbusiness,whentheactivityis
carriedoutcontinuously,andthepropertyhasanumberofuptofourrooms,andamaximum
ofeightbeds,andtheaccommodationservicealsoincludesthebreakfast.Thefacilitiesmust
comply with provisions for residential homes, and existing building laws and health and
hygieneregulations,aswellasallthefunctionalandstructuralminimumrequirementssetout
inAnnextotheLaw(Art.9.1).
4.9
Regionallaw.Milan
Art.19,RegionalLawof1October2015,n.27(Regionalpoliciesontourismandattractiveness
ofLombardy)providesalistofnon-hotelaccommodations.Non-hotelaccommodationare:a)
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Holidayhomes;b)youthhostels;c)Lombardyguesthouses;d)inns;e)housesandapartments;
f) bed & breakfast; g) alpine huts, hiking and bivouacs shelters; h) hospitality businesses
outdoors.Amongthem,housesandapartmentsandB&Bmaybepotentiallyrelevantforthe
sharingeconomy.
4.9.1 Nonhotelaccommodations.Regionalclassification
Housesandapartmentsarethoseaccommodationfacilitiesmanagedandarrangedtoprovide
lodging and complementary services in housing units or parts of them, for residential
purposes,consistingofoneormorefurnishedrooms,withtoiletandkitchen,andlocatedin
aoneormoreresidentialcomplexes.70Housesandholidayapartmentscanbemanaged:a)as
business;b)asnon-business,foruptothreeunitsiftheactivityiscarriedoutonanoccasional
basis.Housesandapartmentsretaintheurbanresidentialandmustsatisfythehealthand
hygieneandbuildingrequirementsforresidentialpremises.
Bed & breakfast are those non-business, family-run, activities for accommodation and
breakfast, consisting in no more than four rooms with up to twelve beds, availing normal
familyorganization,includingthepresenceofdomestichouseholdemployees(art.29).The
activities must stop for at least ninety days. Each period of business interruption must be
notifiedinadvancetotherelevantprovinceorterritorytotheCityofMilan.Theexerciseof
bed&breakfastactivitydoesnotrequireregistrationinthecommercialregisterandVATand
benefitsfromthefacilitiesprovidedbytheRegion.
Hotelandnon-hotelaccommodationactivitiesneedapriorSCIA,inaccordancewithArticle
19ofthel.241/1990.Apriornoticetothemunicipalitysufficesforhousesandapartments.
The SCIA is presented to the relevant municipality to be accompanied by documentation
provingtheexistenceoftheterritoryrequirementsunderapplicableregulations(acopyof
theSCIAmustbevisiblydisplayedinsidethepremiseswheretheactivityisperformed).
70
Seeart.26,Definitionandfunctionalcharacteristicsofhousesandapartments.
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Inadditiontocompliancewithapplicabletaxlawsandsafetyrules,allhotelandnon-hotel
accommodation are required to communicate flows of tourists in accordance to regional
tourism guidelines and the recommendations of the P.S. Authority. Non-hotel
accommodationsdonotrequirethechangeofusefortheexerciseoftheactivity.Theowners
offacilitiesgovernedbyRegionallawarerequiredtotakeoutinsurancefortherisksresulting
fromcivilliabilitytocustomers,adequatetotheaccommodationvolume.
Anyonewhocarriesonabusinessfortouristicaccommodation,andanyonewhousesand
advertises,includingonline,oneofthenamesreferredtoinArticle18,paragraphs3and4,
andArticle19,paragraph5,withouthavingpresentedtheSCIAorcommunicationreferredto
inArticle38,paragraph1,incurstheadministrativesanctionfrom€2,000to€20,000.Any
personwhopursuesanactivityashotelandnothotelaccommodation,intheabsenceofthe
requirements, incurs administrative fine from € 2,000 to € 10,000. In case of repeated
violations,thepenaltiesreferredtoinparagraphs1,2and3,aredoubled,subjecttotheright
oftheMunicipality,tosuspendtheactivityfornomorethanthreemonthsorthecessationof
theactivityinmostseverecases.
4.10 Platforms
4.10.1 Decretolegislativon.70/2003.Attuazionedelladirettiva2000/31/CErelativaataluni
aspettigiuridicideiservizidellasocietàdell'informazione,inparticolareilcommercio
elettronico,nelmercatointerno
According to the E-commerce Directive 2000/31, Internet intermediary service providers
shouldnotbeheldliablefortheinformationtheytransmit,storeorhost,aslongastheyact
inastrictlypassivemanner(articles12to14).71ThisrulehasbeentransposedinItalywith
71
Article12("Mereconduit"):1.Whereaninformationsocietyserviceisprovidedthatconsistsofthetransmissionina
communicationnetworkofinformationprovidedbyarecipientoftheservice,ortheprovisionofaccesstoacommunication
network,MemberStatesshallensurethattheserviceproviderisnotliablefortheinformationtransmitted,onconditionthat
theprovider:(a)doesnotinitiatethetransmission;(b)doesnotselectthereceiverofthetransmission;and(c)doesnot
selectormodifytheinformationcontainedinthetransmission.2.Theactsoftransmissionandofprovisionofaccessreferred
toinparagraph1includetheautomatic,intermediateandtransientstorageoftheinformationtransmittedinsofarasthis
takes place for the sole purpose of carrying out the transmission in the communication network, and provided that the
informationisnotstoredforanyperiodlongerthanisreasonablynecessaryforthetransmission.3.ThisArticleshallnot
affectthepossibilityforacourtoradministrativeauthority,inaccordancewithMemberStates'legalsystems,ofrequiring
theserviceprovidertoterminateorpreventaninfringement.
Article 13 ("Caching"). 1. Where an information society service is provided that consists of the transmission in a
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Decretolegislativon.70/2003(“Attuazionedelladirettiva2000/31/CErelativaataluniaspetti
giuridicideiservizidellasocietàdell'informazione,inparticolareilcommercioelettronico,nel
mercatointerno”).
Despite this reception, it is not always easy to define what intermediaries can do without
losingthepossibilitytobenefitfromthelimitationsofliabilitysetoutintheDirective.Asa
generalrule,underthee-CommerceDirective,intermediariesloseprotectioniftheyaretoo
“active”, as opposed to being “passive” and “neutral” (the more discretion the platform
exercisesinmanagingthefunctioningofthewebsite,themoreresponsibilityithas).72
4.10.2 Caselaw
Inthelastyears,manycaseshavebeendecidedinapplicationofthenewlegalregimederived
fromtheimplementationofthee-commerceDirective,especiallywithregardstotheliability
ofonlineplatforms.
communicationnetworkofinformationprovidedbyarecipientoftheservice,MemberStatesshallensurethattheservice
providerisnotliablefortheautomatic,intermediateandtemporarystorageofthatinformation,performedforthesole
purposeofmakingmoreefficienttheinformation'sonwardtransmissiontootherrecipientsoftheserviceupontheirrequest,
onconditionthat:(a)theproviderdoesnotmodifytheinformation;(b)theprovidercomplieswithconditionsonaccessto
theinformation;(c)theprovidercomplieswithrulesregardingtheupdatingoftheinformation,specifiedinamannerwidely
recognisedandusedbyindustry;(d)theproviderdoesnotinterferewiththelawfuluseoftechnology,widelyrecognisedand
usedbyindustry,toobtaindataontheuseoftheinformation;and(e)theprovideractsexpeditiouslytoremoveortodisable
accesstotheinformationithasstoreduponobtainingactualknowledgeofthefactthattheinformationattheinitialsource
ofthetransmissionhasbeenremovedfromthenetwork,oraccesstoithasbeendisabled,orthatacourtoranadministrative
authorityhasorderedsuchremovalordisablement.2.ThisArticleshallnotaffectthepossibilityforacourtoradministrative
authority,inaccordancewithMemberStates'legalsystems,ofrequiringtheserviceprovidertoterminateorpreventan
infringement.
Article14(Hosting).1.Whereaninformationsocietyserviceisprovidedthatconsistsofthestorageofinformationprovided
byarecipientoftheservice,MemberStatesshallensurethattheserviceproviderisnotliablefortheinformationstoredat
therequestofarecipientoftheservice,onconditionthat:(a)theproviderdoesnothaveactualknowledgeofillegalactivity
orinformationand,asregardsclaimsfordamages,isnotawareoffactsorcircumstancesfromwhichtheillegalactivityor
informationisapparent;or(b)theprovider,uponobtainingsuchknowledgeorawareness,actsexpeditiouslytoremoveor
todisableaccesstotheinformation.2.Paragraph1shallnotapplywhentherecipientoftheserviceisactingunderthe
authorityorthecontroloftheprovider.3.ThisArticleshallnotaffectthepossibilityforacourtoradministrativeauthority,
inaccordancewithMemberStates'legalsystems,ofrequiringtheserviceprovidertoterminateorpreventaninfringement,
nordoesitaffectthepossibilityforMemberStatesofestablishingproceduresgoverningtheremovalordisablingofaccess
toinformation.
72
Inarecentdecision,theMilanoCourtofAppealruledthatavideosharingplatformisnotliableforcontentspublishedby
itsusersevenifthispublicationinfringescopyright.Corted’AppellodiMilano,n.29,22January2015,reformingTribunaledi
Milano,9settembre2011,n.10893.
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In an important decision in 2009, Corte di Cassazione ordered the seizure of file sharing
websiteThePirateBay,issuinganinjunctiontotheproviderinordertoimpedetheaccessto
thewebsite73(CassazioneconfirmedtheresolutionoriginallyadoptedbyProcuratoredella
Repubblica of Bergamo, lately revoked by Giudice per le indagini preliminari).74 In its
conclusiontheCourtclarifiedthatawebsitethatlimitsitsactivitytotheofferingofapeer-topeerprotocolforfilesharingisnottobedeemedliable,bothoncivilandcriminalground.On
thecontrary,adifferentsolutionwouldapplytowebsitesthatcontributetothecreationof
anindexofinformationprovidedbycustomers,sohelpingthemtofinddownloadablefiles.
Inthislattercase–Cassazioneaffirms–theactivityperformedbythewebsiteisnotjust“mere
conduit”butinstead“transportationofcontentsprotectedbycopyright”.Addingthat,insuch
acase,eventheminimalinformationwouldbesufficienttoheldthewebsiteliable,according
toart.171ter,co.2,let.a-bis,Legge22aprile1941n.633(“Protezionedeldirittod'autoree
dialtridiritticonnessialsuoesercizio”).
Otherdecisionshavebeenissuedbynationallowercourts,mainlyinRomeandMilan.Avery
strict position has been taken by Tribunale Roma 16.12.2009 and 11.2.2010. The solution
provided by the Court in these two related pronouncements was based on the factual
circumstancesunderexamination:thatprovidersofferedadditionalservicestoitscustomers;
received several injunctions by injured parties; enjoyed contractual rights to control the
contentuploadedbytheirclients;andretainedarighttodiscontinuetheserviceincaseof
violation. According to these decisions, under such circumstances a provider has a duty to
immediatelyremoveillegalcontentonceitisawareoftheirexistence;andthisawarenesscan
beprovedbythemereexistenceofacommunicationbytheinjuredparties,withnoneedto
receiveaformalstatementbypublicauthorityorbyacourt.75
AnotherimportantrulingisTribunaleMilano9.9.2011,dealingwiththeviolationofcopyright
lawcausedbytheavailabilityofaTVshowsavailableviaYahoo!.Alsointhiscase,thecourt
foundthatthedefendantplayedanactiveroleinmanagingthewebsite.Thisactiverolewas
73
Cass.Pen.sez.III,29.9.2009,n.49437,Foroit.,2010,II,136;eDir.Inf.,443s.
ForthefirstdecisionseeDir.Inf.2009,258.
75
Trib.Roma,16.12.2009,inForoit.,2010,I,1348;Giur.it.,2010,1323;Obbligazioniecontratti,2010,3030;Dir.Inf.,275.
74
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provedbythefollowingactivities:linkingadstovideos;offeringservicestobettervisualize
online contents; creating a service where third parties could signal the existence of illegal
contents; and maintaining a contractual right to control and remove illegal contents. In
considerationoftheseelements,theCourtconcludedthatthedefendanthadretainedfor
itselfanactiveroleincheckingcontents,performingafunctionwhichisradicallydifferent
frompurehosting.Asinthepreviouscase,theCourtconcludedfortheexistenceofadutyto
removeillegalcontent,withnoneedtoreceiveaformalstatementbyapublicauthorityora
court.Andthisconclusionwasheldvalideveninthosecaseswhenthecommunicationdoes
notprovidedetailedinformationoneachillegalcontent,sincethewebsitecanmakeuseof
theverysametoolsthatthirdpartiesusetosearchonlinecontents.76
OneofthemostsignificantItalianverdictonthisissueisthefamousGoogleViviDowncase.
ThiscasewasfirstdecidedbyTribunaleMilano,withadecisionlatelyreversedbyCourtof
AppealandfinallyconfirmedbyCassazione.77Theissuewasthe(criminal)liabilityofGoogle
officialsforavideoinwhichayoungstudentaffectedbyautismisharassedbyhisclassmates.
Thevideo,whichwassadlysuccessful,waslatelyremoved,butonlyafterseveralinjunctions
weresenttothewebsite.Theratiodecidendiofthejudgmentoffirstinstancewasbasedon
thelackofinformedconsentofthepersonoffendedinthevideo;aratiothatwasrejectedby
CourtofAppealonthebasisthatasimilardutyonthedefendantwouldbetooburdensome
and dangerous for freedom of expression. This conclusion was confirmed by Corte di
Cassazione.
InanotherdecisionrenderedbyTribunaleRoma,11.7.2011,thecourttookamorenuanced
position.Inthiscase,theCourtwascalledtodecidewhetherYahoo!searchenginewasliable
for helping customers to find movies protected by copyright, through suggested links to
streaminganddownloadwebsites.Inlinewithpreviouspronouncements,theCourtaffirmed
thatasimplecommunicationissufficienttoconsiderthewebsiteawareoftheillegalcontent,
withnoneedofanyofficialinjunctionbyacourt.Ontheotherside,theCourtconcludedthat
76
77
Trib.Milano,9.9.2011,n.10893,Riv.Dir.Ind.,2011,559.
Trib.Milano,24.2.2010;App.Milano,21.12.2012;Cass.Pen.17.12.2013,n.3672.
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anonspecificcommunication,withlittleornoelementtoidentifytheillegalcontents,cannot
bedeemedasadequateknowledgeoftheinfringement,anddoesnotimposeadutyonthe
websitetosearchandremovetheallegedlyillegalcontents.78
In2014,TribunaleTorinocondemnedYouTubeasanonlinecontentprovider,ontheground
that the website had played an active role, modifying online contents uploaded by its
customers: by indexing those contents, dividing them into channels, suggesting specific
contentstoeachcustomerinaccordancewiththeirtastesandpreferences,makingmoney
using these content, by selling ads linked to each video. So, de facto creating brand new
contents.79
AmorerecentjudgmenthasbeenissuedbyCorted’AppelloMilano,reformingtheverdict
renderedbytheCourtoffirstinstanceinRTIv.Yahoo!.Inthisdecision,theCourtofAppeal
rejectedthedominantapproachtakenbyItaliancourtssincethen,andconcludedthateven
ifanhostingprovideroffersadditionalservices,thiscircumstanceisnotbyitselfsufficientto
defineitasanactiveintermediary.Andthisconclusionisheldtobevalidalsointhosecases
whentheactivityoftheprovidergoeswellbeyondthedistinctionmadebytheeCommerce
Directive.Accordingtothisdecision,onlywhenthecontributionofferedbytheproviderisso
significant,thatitamountstoanalterationoftheoriginalcontents,theexemptionprovided
bytheDirectivedoesnotapply.Indoingthis,theCourtopenlyadoptedanevolvingstandard
of judgment for the activities of online platforms and underscored the need of a drastic
revisionoftheDirectiveanoffered.80
78
SeeTrib.Roma,11.7.2011,Riv.Dir.Ind.,2012,II,19,inDir.Ind.,2012,75;Trib.Roma,22.3.2011,Dir.Inf.,2011,532;Danno
resp.2011,753
79
Trib.Torino,23.6.2014.
80
App.Milano,7.1.2015,inDiritto24,27.1.2015.Onthesameline,seealsoTrib.Roma,20.10.2011.
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4.11 Homeswap
4.11.1 Obligationsandmoney
Under Italian law there is no legal definition of “money”. Absent a statutory definition,
scholars usually describe “money” as “any adopted measure of value and/or any common
objectusuallyemployedasmediumofexchange”.81
TheItaliancivilcodeprescribesspecialrulesfortheso-called“obbligazionipecuniarie”,which
arethosespecialobligationswhoseobjectismoney(art.1224c.c.).82Moneyobligationsare
subjecttonominalistprinciple,whichimpliesthataunitofcurrencyisalwaysequaltoitself
andunaffectedneitherbytheexternalchangesinthevalueofcurrency(therateofexchange)
norbytheinternalchanges.
Thisprincipleislaiddowninart.1277c.c.:
“I debiti pecuniari si estinguono con moneta avente corso legale nello Stato al tempo del
pagamentoeperilsuovalorenominale.Selasommadovutaeradeterminatainunamoneta
che non ha più corso legale al tempo del pagamento, questo deve farsi in moneta legale
ragguagliatapervaloreallaprima.”
However, courts have radically limited the generality of this principles, in order to protect
creditor’sinterestsespeciallyintimeofhighinflation.83
4.11.2 Remunerationandcontracts
A remuneration may not only consist in money but also in any other valuable advantage
conferredontheotherparty.Thisadvantagecanbeeithereconomicornon-economic,so
81
T.Ascarelli,Obbligazionipecuniarie(artt.1277-1320).
Art.1224c.c.(Danninelleobbligazionipecuniarie):“Nelleobbligazionichehannoperoggettounasommadidanaro,sono
dovutidalgiornodellamoragliinteressilegali,anchesenoneranodovutiprecedentementeeancheseilcreditorenonprova
di aver sofferto alcun danno. Se prima della mora erano dovuti interessi in misura superiore a quella legale, gli interessi
moratori sono dovuti nella stessa misura. Al creditore che dimostra di aver subito un danno maggiore spetta l'ulteriore
risarcimento.Questononèdovutoseèstataconvenutalamisuradegliinteressimoratori.”
83
See,exmultis,Cass.21.8.1985,n.4468;Cass.4.12.1992,n.12942.
82
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longasittrulyreflectsacreditor’sinterestthatisdemonstrablyvaluablefromaneconomic
perspective(art.1174c.c.).84
UnderItalianlaw,theconceptofremuneration(orcompensation)isrelatedtoreciprocity,
and implies that the performance of one contracting party finds its justification in the
performanceoftheother.Reciprocitynotonlyindicatestheexistenceofremuneration,but
alsodeterminestheinterdependenceoftheperformances,creatingacontractualnexus,so
thateachperformanceisconditionalontheother(so-calledsynallagma).
Acontractisbilateralifitenvisagesreciprocalperformancesofthepartiestowardeachother.
Insuchacontractthereisadoublerelationshipofrightsanddutiesandeachcontractingparty
isatthesametimebothpromisorandpromisee.Thecategoryofcontractsinvolvingreciprocal
performancesincludesallthosecontractsfromwhichpartiesreceivereciprocalbenefitsand
detrimentsofaneconomiccharacter,involvingrealorpersonalrightsandduties,according
totheRomanschemes:doutdes,facioutdes,facioutfacias.
Inso-called“bilateral”contracttheconferralofanadvantagebyonepartyinjustifiedbya
“remuneration”bytheother.Thiskindofcontractcreatesreciprocalandinterrelatedrights
andduties.Inaccordancewiththeseprinciples,apartycanrefusetocarryoutherpromiseif
the other party does not carry out her offer (art. 1460 c.c.), and may be released from
contractualbondunderthesamecircumstances(art.1453c.c.).85
A contract is onerous if each of the contracting party obtains a benefit in exchange for
remuneration; a contract is gratuitous if one party confers a benefit on the other without
84
Art.1174c.c.(Caratterepatrimonialedellaprestazione):“Laprestazionecheformaoggettodell'obbligazionedeveessere
suscettibiledivalutazioneeconomicaedevecorrispondereauninteresse,anchenonpatrimoniale,delcreditore.”
85
Art. 1460 c.c. (Eccezione di inadempimento): “Nei contratti con prestazioni corrispettive, ciascuno dei contraenti può
rifiutarsidiadempierelasuaobbligazione,sel’altrononadempieononoffrediadempierecontemporaneamentelapropria,
salvocheterminidiversiperl’adempimentosianostatistabilitidallepartiorisultinodallanaturadelcontratto.Tuttavianon
può rifiutarsi l’esecuzione se, avuto riguardo alle circostanze, il rifiuto è contrario alla buona fede”. Art. 1453 c.c. (Della
risoluzioneperinadempimento):“Neicontratticonprestazionicorrispettive,quandounodeicontraentinonadempielesue
obbligazioni,l'altropuòasuasceltachiederel'adempimentoolarisoluzionedelcontratto,salvo,inognicaso,ilrisarcimento
deldanno.Larisoluzionepuòesseredomandataanchequandoilgiudizioèstatopromossoperottenerel'adempimento;ma
non può più chiedersi l'adempimento quando è stata domandata la risoluzione. Dalla data della domanda di risoluzione
l'inadempientenonpuòpiùadempierelapropriaobbligazione.”
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receiving anything in exchange. This distinction has important consequences as to the
applicablelegalrules,amongwhich:theliabilityforbreachofpromiseisassessedlessstrictly
ingratuitouscontracts;thecreditor’sclaimtorevokedebtor’sdispositionofassetaresubject
todifferentrules(art.2901c.c.);andlessstrictrulesalsoapplytoliabilityincaseofeviction
(art.797c.c.)andlatentdefects(art.798c.c.),ifcomparedtoonerouscontracts(art.14761490c.c.).
4.11.3 QualificationofhomeswapunderItalianlaw
Home exchange/swap is the temporary exchange of homes, usually for holidays. The
exchange can be simultaneous, when it takes place in the same period, or it can occur in
different moments. In this latter case, the exchange system if often coupled with a credit
systemthatcanberedeemedatalaterdate,solesseningpotentialschedulingproblemsthat
canhamperstraighthomeswaps.Usuallynomonetaryexchangetakesplace.
The Italian civil code lists a number of “named” contracts (contratti tipici or nominati),
providingspecificrulesforeachofthem.Atthesametime,italsoacknowledgesthatparties
arefreetomakeothercontracts(contrattiatipiciorinnominati),followingtheprincipleof
autonomyofthewill.Inthissecondcase,thecontractmustfirstbe“qualified”byacourt,in
ordertodeterminewhetheritfallswithintherealmofofnominatecontract:asaresult,the
court may decide that the contract is akin to one specific nominate contract or that it
compriseselementsofseveralnominatecontracts,interpretingitaccordinglyandapplying
therelateddiscipline.
HomeswapisnotregulatedinItaly.Itfollowsthat,underItalianlaw,ahomeswapcontract
isa“contrattoatipico”(art.1322c.c.).Besidethegeneraldisciplineoncontract(art.13211469c.c.),thelegaldisciplineapplicabletohomeswapiseitherthatofbarterorlease.Even
if barter is usually thought to regard the exchange of property rights, legal doctrine also
includes the temporary exchange of things within the boundaries of this agreement. An
alternativeaccountconsidersthiscontractasaspecificcaseoflease,wherethequidproquo
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isnotmoney,butares.86However,nocourtdecisionhasbeenfoundthatlegallydefinesthis
kindofcontract.
Followingthedistinctionslaiddownabove,homeswapisasynallagmatic(bilateral)contract,
where both parties confer advantages on the other one, while obtaining a reciprocal
advantageforthemselves;andanonerousone,sincebothpartieshavetheintentiontoconfer
suchanadvantageinexchangeforareciprocaladvantage.
Absentaspecificsetofrules,homeswapoftentakestheformofadetailedwrittenagreement
between two parties to swap their homes for a given period of time, although verbal
agreementsarealsofrequent.
Despite the absence of money, potential risks connected to this kind of exchange are not
negligible, and online platforms play an important role in guaranteeing the fairness of the
exchangeandthepreventionand/orresolutionofdisputes;platformsmayalsorequireprior
registration of the parties, check parties’ reliability, provide penalties in case of
breach/damages, and recommend to take up insurance. Platforms may provide detailed
guidanceonhowtoarrangeaswaporevenarrangeit.However,mostplatformsdonotaccept
responsibilityfordamagesassociatedwithanyexchange.
4.12 Conclusions
The existing line between short-term lease, that a private party can make with almost no
formality,andtouristaccommodation,whichnecessarilyimposescompliancewithnational
andregionalregulations,dependsonmanyfactorsandisbasedondisparatesourcesoflaw.
Thoughtnosharplinecanbetracedbasedondefinitecriteriaandeachregionallawmustbe
takenintoaccountinordertohaveacompleteandreliablepictureofthelegalframework
86
The Corte di Cassazione ruled that the quid pro quo for a lease contract can be obligation to deliver a res. See Cass.
1909/1965.
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applicabletoshort-termrentalinItaly,thetwoelementsthathelptodefineashorttermrent
ornon-hotelaccommodationarethelengthofstayandtheprovisionofadditionalservices.
The first distinguishing criterion between touristic lease and non-hotel accommodation is
basedonwhetherornotadditionalservicesareoffered.Onthecontrary,ifancillaryservices
arealsoprovided,anon-hotelaccommodationisrealisedwithconsequentialobligations.
The second relevant element is the length of use. As a general rule, if the property rental
businessworksthroughouttheyearitisdeemedtobenonhotelaccommodation,whereas
shorter period can be seen as occasional rent. However, different rules determine how to
ascertainhowthelengthofrentalactivityaffectsthequalificationofshorttermrentalsas
businessornot(seesupra).Bothnationallawandregionallawsregulatetimelimitsfornon
professionalrentalactivities.Thisisusuallydoneeitherbyreferencetosomehowindefinite
categories, such as “occasionally” (“occasionalmente”) as opposed to “continuously”
(“continuativamente”), or by adding specific time limit for each category of non-hotel
accommodation. Most Italian regional laws use this two-track regime, by either defining
discrete time limits or indeterminate expressions for each classified category of non hotel
accommodation.87
This distinction between touristic lease and non-hotel accommodation, together with the
differentlayersofnational,regionalandmunicipalrules,createsasomehowconfusedlegal
scenario,thatmayrenderlessattractivetheprovisionofservicesinshorttermpeer-to-peer
rentalsector(seeinfra).
4.13 Legaltexts
-Art.117-118,Costituzione
-Legge18ottobre2001,n.3
-Art.1571ss.Codicecivile
87
LombardiaRegionalLawof1October2015,n.27(RegionalpoliciesontourismandattractivenessofLombardy).
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-Codicedelturismo(Decretolegislativo23maggio2011,n.79)
-D.L.22giugno2012,n.83
-D.L.25giugno2008,n.112
-Legge04agosto2006,n.248
-D.Lgs.9aprile2003,n.70
-Legge29marzo2001,n.135
-Legge9dicembre1998,n.431
-Legge7agosto1990,n.241
-D.P.R.26aprile1986,n.131
-Legge17maggio1983,n.217
-Regiodecreto18giugno1931,773
-LeggeregionaleLazio,7agosto2015,n.8
-LeggeregionaleLazio,6agosto2007,n.13
-LeggeregionaleLombardia,1ottobre2015,n.27
CorteCostituzionale,2-5aprile2012,n.80
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5
5.1
UNITEDKINGDOM.LONDON
TaskI-Identificationoftheexistingrules
First, identify the national, regional or local rules and administrative practices (related for
example to the functioning of the registry) that apply and regulate the above-mentioned
activitiesbothforprovidersoftheassets(rooms,apartments,etc)forhome-sharingorshorttermrentalsandhomeswapping,andtheonlineplatformsoffering/advertisingthoseassets.
5.2
Thecollaborativeeconomy
TheUKGovernmentstronglybelievesthesharingeconomycanhelpcitiestoaddresssocial
andeconomicchallengesininnovativenewwaysandtodrivelocalgrowth.Forthisreasonit
intends to be at the forefront of the sharing economy, questioning old barriers that stop
peoplesharingtheirassetsandprovidinganenvironmentforthesharingentrepreneursto
flourish.88
The government also intends to enable government employees to use sharing economy
solutionstobookaccommodationandtransportwhentravellingonofficialbusiness,where
thisrepresentsvalueformoney,andtoamendthefutureTravelandVehicleHirecontracts
due to be awarded by the Crown Commercial Service providing accommodation sharing
choices.
Anewtradebody,SharingEconomyUK(SEUK),hasbeenlaunchedinMarch2015torepresent
thesector.89
5.3
Theaccommodationsector
InLondontherearemorethan25,000listings. Around52%areentirehomes/apartments;
45%privateroomsandlessthan2%sharedrooms.41%oftheentirehomesbeinglistedin
LondononAirbnb(7,893of13,331)arebyhoststhathavemorethanonelisting.Theaverage
88
DepartmentforBusiness,innovationandSkills,Independentreviewinthesharingeconomy.Governmentresponse,March
2015. This document was issued in response to D. Wosskow, Unlocking the sharing economy. An independent review,
November2014.
89
http://www.sharingeconomyuk.com/.
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price per night is £ 101.90 A problem of enforcement also exists. According to a source, in
Londonaroundfourtypercentofalllistingsareprobably“professionalhostsrunningpseudohotels”.91
5.3.1 TheTownandcountryplanningact1990
In order to appreciate rules applicable to short term rents in London, a short premise on
planning permission may be useful, so to frame the applicable legislation – especially the
GreaterLondonCouncil(GeneralPowers)Act1973-withinthecontextofEnglishplanning
system.
UndertheTownandCountryPlanningAct1990,aplanningpermissionisrequiredforany
developmentofland(subjecttocertainprovisions).Themeaningofdevelopmentissetoutin
section55(1)ofthe1990Actandincludesa“materialchangeintheuse”.
Sec.55.Meaningof“development”and“newdevelopment”
Subject to the following provisions of this section, in this Act, except where the context
otherwiserequires,“development,”meansthecarryingoutofbuilding,engineering,miningor
otheroperationsin,on,overorunderland,orthemakingofanymaterialchangeintheuseof
anybuildingsorotherland.92
TheActdoesnotprovideastatutorydefinitionof“materialchangeintheuse”.However,its
meaningisusuallylinkedtothesignificanceofachangeandtheresultingimpactontheuse
oflandandbuildings.
90
http://insideairbnb.com/london/index.html?neighbourhood=&filterEntireHomes=false&filterHighlyAvailable=false&filter
RecentReviews=false&filterMultiListings=false
91
See UK House of Commons, Supplementary Written Evidence from the British Hospitality Association, 1, at
http://data.parliament.uk/writtenevidence/committeeevidence.svc/evidencedocument/business-innovation-and-skillscommittee/the-digital-economy/written/26821.html.
92
http://www.legislation.gov.uk/ukpga/1990/8/section/55.
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5.3.2 TheGreaterLondonCouncil(GeneralPowers)act1973
UKplanninglegislationspecifiesthatthechangeofuseoflandorbuildingsrequiresplanning
permissionsofarasitconstitutesa“materialchangeintheuse”.Intheshort-termletting
sectorthismeansthatapersonmaybeabletorentherresidentialpropertyprovidedthatit
doesnotamounttoamaterialchangeintheuse.93
Inordertoverifytheoccurrenceofa“materialchangeintheuse”duetoshorttermrentals,
localplanningauthoritiesmustpondereachcase,takingintoaccountallrelevantelements:
theamountofapropertywhichisusedasashort-termlet,thefrequencyofuse,whetherthe
propertyownersliveinthepropertywhilstitisusedasashorttermlet(i.e.providedthata
houseisprimarilyusedasahomefirst,andshort-termlettingaccommodationasasecondary
use).94
UntilMarch2015,LondonwassubjecttodifferentrulesfromtherestofthecountryandThe
GreaterLondonCouncil(GeneralPowers)Act1973wasthelawapplicabletoshort-termrents
intheCityofLondon.Section25oftheGreaterLondonPowersAct1973statedthatthe“use
astemporarysleepingaccommodationofanyresidentialpremisesinGreaterLondoninvolves
amaterialchangeofuseofthepremisesandofeachpartthereofwhichissoused”.
ThismeansthatrentingapropertyinLondonwouldalwaysamounttoa“materialchangein
the use” that required a planning application to be submitted, and this ban was valid
regardlessthelengthofthestay(thisruleappliedevenifonlypartofthepremisesisusedas
temporarysleepingaccommodation).95
93
Under the Town and Country Planning (Use Classes) Order 1987 Houses are grouped into use class C3, whereas guest
housesandboardinghousesaregroupedintouseclassC1.
94
DepartmentforCommunitiesandLocalGovernment,ReviewofPropertyConditionsinthePrivateRentedSector,February
2014,48-50.
95
DeregulationAct(2015),ExplanatoryNotes,CommentaryonSections44-45,206.
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Consideringthedestinationofaresidentialpremisestotemporarysleepingaccommodation
as a material change of use implies that a change from residential premises to temporary
sleepingaccommodationistobeseenasdevelopmentwhichrequiresplanningpermission.96
Inaccordancewiththisstatute,homeownersinLondonwerebannedfromlettingouttheir
propertyonashorttermbasis,unlesstheyhadplanningpermission.Thosewhodisregarded
thisrulefacedapossiblefineofupto£20,000foreach“offence”offailingtosecureplanning
permission.
TheGreaterLondonCouncil(GeneralPowers)Act1973aimedtosafeguardthehousingsupply
inLondon,andthepurposeofsection25oftheActwastoprotectLondon’sexistinghousing
supply,restrictingtheuseofresidentialpremisesinthethirty-twoLondonboroughsandthe
Cityastemporarysleepingaccommodation,forthebenefitofpermanentresidents,bygiving
Londonboroughsgreaterandeasiermeansofplanningcontroltopreventtheconversionof
familyhomesintoshorttermlets.97Thisresultwasachievedbymakingtheuseastemporary
sleeping accommodation of the premises a “material change of use” for which planning
permissionisrequired.
5.4 RulesapplicableoutsideLondon
InUKalandlordmaybeabletorentherresidentialproperty,providedthatitdoesnotamount
toamaterialchangeinuse,forwhichaplanningpermissionisrequiredundertheTownand
Country Planning Act 1990. Under this Act, a planning permission is required for any
developmentoflandifthisdevelopmentamountstoa“materialchangeintheuse”.98
96
DeregulationAct(2015),ExplanatoryNotes,CommentaryonSections44-45,209.
DeregulationAct(2015),ExplanatoryNotes,CommentaryonSections44-45,208.
98
Sec.55.Meaningof“development”and“newdevelopment”:Subjecttothefollowingprovisionsofthissection,inthisAct,
exceptwherethecontextotherwiserequires,“development,”meansthecarryingoutofbuilding,engineering,miningor
otheroperationsin,on,overorunderland,orthemakingofanymaterialchangeintheuseofanybuildingsorotherland
http://www.legislation.gov.uk/ukpga/1990/8/section/55.
97
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TheActdoesnotprovideastatutorydefinitionof“materialchangeintheuse”.However,its
meaningisusuallylinkedtothesignificanceofachangeandtheresultingimpactontheuse
oflandandbuildings.
Inordertoverifytheoccurrenceofa“materialchangeintheuse”,localplanningauthorities
should ponder each case in order to verify whether the use of a residential premise as
temporary sleeping accommodation amounts to a significant transformation99, taking into
account all relevant elements: among others, whether the property owners live in the
propertywhilstitisusedasashorttermlet(i.e.providedthatahouseisprimarilyusedasa
homefirst,andshort-termlettingaccommodationasasecondaryuse).
Insum,outsideLondonlocalplanningauthoritiesmustpondereachcaseeachcaseofshort
termrentals,takingintoaccountallrelevantelements,amongwhichwhethertheproperty
ownerslivesinthepropertywhilstitisusedasashorttermlet(i.e.providedthatahouseis
primarilyusedasahomefirst,andshort-termlettingaccommodationasasecondaryuse).100
5.5
Theneedforachange
MorerecentlytheseLondonprovisionsfromthe1970shaveattractedcontroversy,especially
duringtherecentLondonOlympicswhereatouristicaccommodationshortagetookplace.As
statedintheExplanatoryNotestotheAct,internethasalsochangedpatternsinshort-term
lets,asnewtechnologiesarehelpingfacilitatehouseholdersrentouttheirhomesforshort
periodsoftimewithoutrecoursetotraditionallettingagencies;andhascreatedentirelynew
waystodobusiness,makingmucheasierforpeopletorentouttheirproperty,andallowing
residentstosupplementtheirincomesandoffernewexperiencesforconsumers.
Thecallforchangewasbasedonthisnewrealitytakingplaceandthewidespreaddiffusionof
99
DepartmentforCommunitiesandLocalGovernment,ReviewofPropertyConditionsinthePrivateRentedSector,February
2014,48-50.
100
DepartmentforCommunitiesandLocalGovernment,ReviewofPropertyConditionsinthePrivateRentedSector,February
2014,48-50.
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practicesinbreachoflawanddifficultiesinenforcement.Thedevelopmentoftheinternet
andchangesinthewaythatpeoplewanttousetheirhomehaveledtocallsfortheprovisions
ofsection25toberelaxedsothatpeopleinLondoncanletouttheirpropertyastemporary
sleepingaccommodationforshortperiodswithoutobtainingplanningpermission.101
As stated in a Discussion Document issued by the Department for Communities and Local
GovernmentinFebruary2015(“PromotingthesharingeconomyinLondon.Policyonshortterm use of residential property in London”): “There are currently thousands of London
propertiesandroomsadvertisedforuseasshort-termaccommodationonwebsites.However,
each is potentially in breach of Section 25 as it stands. The current legislation is poorly
enforced leading to confusion and uncertainty for householders as to whether their local
authority will take planning enforcement action against them for unauthorised short-term
letting”.Asmentioned,thiswasparticularlyevidentduringtheLondonOlympicswherethere
was some controversy over the inconsistent application of the legislation across the
Boroughs.102
5.6
DiscussionDocument“PromotingthesharingeconomyinLondon.PolicyonshorttermuseofresidentialpropertyinLondon”
TheamendmentofSection25oftheGreaterLondonCouncil(GeneralPowers)Act1973that
tookplaceinMarch2015wasprecededbytheabove-mentionedDiscussionDocument,which
summeduptheresultsofasurveyfortheneedforreformofshort-termlettinginLondon.
Theresultsaresomehowconflicting.
While organisations and individuals involved in short-term letting in London were strongly
supportive of the proposals to modernise this legislation, eight authorities and London
Councilswereopposedtochangingthelegislationonthebasisthattheyfearanincreasein
short-termlettingwouldleadtoalossofamenityandhousingsupply(thosewithconcerns
101
DeregulationAct(2015),ExplanatoryNotes,CommentaryonSections44-45,210.
DepartmentforCommunitiesandLocalGovernment,PromotingthesharingeconomyinLondon.Policyonshort-termuse
ofresidentialpropertyinLondon,February2015.
102
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includedindividuals,someresidents’associations,propertyownersandrepresentativebodies
andlocalauthorities).Noneofthemwereadvocatingunrestrictedderegulationofshort-term
use.103
ThemodernisationoftheGreaterLondonCouncil(GeneralPowers)Act1973hastheaimto
makeLondonregulationuniformwiththerestofthecountry:whileinallotherpartsofthe
countryresidentswereabletoletouttheirhomesforshortperiodsasamatterofcourse,in
Londonshort-termusewasstrictlyregulatedundertheoldlegislationandshort-termuseas
temporary sleeping accommodation were only permitted once planning permission was
obtainedfromthelocalauthority,whichwas“abureaucraticanddisproportionateprocess”
forallconcerned.ThenewregulationintendstoenableLondonerstoparticipateinthesharing
economyandbenefitfromrecentinnovationsininformationtechnologybylettingouteither
aspareroomortheirwholehouseinthesamewayasotherresidentsacrossthecountry.104
5.7
Deregulationact2015
As a result of the debate, in March 2015 the Deregulation Act 2015 amended the Greater
LondonCouncil(GeneralPowers)Act1973.Withthenewrules,whilepermanentshort-term
useofaresidentialpropertyshouldstillrequireplanningpermission,theActassumesthatthe
short-termlettingofapropertyisreasonable,puttinginplacemeasurestoprovideforthis.
Homeownersarenowable,undergivenconditions,torentouttheirpropertyasashort-term
letforuptoninetydaysayear.
5.8
Changeofuse
DeregulationAct2015createsanewsectionoftheGreaterLondonCouncil(GeneralPowers)
Act1973Act(25a)whichprovidesthattheuseastemporarysleepingaccommodationofany
103
DepartmentforCommunitiesandLocalGovernment,PromotingthesharingeconomyinLondon.Policyonshort-termuse
ofresidentialpropertyinLondon,February2015,13-15.
104
DepartmentforCommunitiesandLocalGovernment,PromotingthesharingeconomyinLondon.Policyonshort-termuse
ofresidentialpropertyinLondon,February2015,1-2.
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residentialpremisesinGreaterLondondoesnotconstituteachangeofuse,forwhichplanning
permissionwouldberequired,ifcertainconditionsaremet.Art.44,DeregulationAct2015
providesthat:
“Despite section 25(1), the use as temporary sleeping accommodation of any residential
premisesinGreaterLondondoesnotinvolveamaterialchangeofuse”.105
Temporary sleeping accommodation is defined as “sleeping accommodation which is
occupiedbythesamepersonforlessthanninetyconsecutivenightsandwhichisprovided
(with or without services) for a consideration arising either by way of trade for money or
money’s worth, or by reason of the employment of the occupant, whether or not the
relationshipoflandlordandtenantistherebycreated”.106
Thisprovisionappliesonlyiftwoconditionsaremet:
1. The first is that the sum of (a) the number of nights of use as temporary sleeping
accommodation,and(b)thenumberofnights(ifany)ofeachprevioususeofthepremisesas
temporarysleepingaccommodationinthesamecalendaryear,doesnotexceedninety;
2.Thesecondisthat,inrespectofeachnightwhichfallstobecountedundersubsection(2)(a)
—(a)thepersonwhoprovidedthesleepingaccommodationforthenightwasliabletopay
counciltaxunderPart1oftheLocalGovernmentFinanceAct1992inrespectofthepremises,
or(b)wheremorethanonepersonprovidedthesleepingaccommodationforthenight,at
leastoneofthosepersonswasliabletopaycounciltaxunderPart1ofthatActinrespectof
thepremises(art44,DeregulationAct2015).
Thefirstconditionisbasedonthenumberofnightsandstatesthattheuseofapremiseas
temporarysleepingaccommodationinonecalendaryearmustnotexceedninety.Thesecond
conditionisthatthepersonwhoprovidedthesleepingaccommodationmustbeliabletopay
counciltax(includingpeoplewhoareliabletocounciltaxbutareinreceiptofadiscount).
105
106
Art.44,DeregulationAct(2015),Short-termuseofLondonaccommodation:relaxationofrestrictions.
DeregulationAct(2015),ExplanatoryNotes,CommentaryonSections44-45,207.
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In sum, the Deregulation Act 2015 restricts short-term letting of residential premises to a
maximumof90daysinacalendaryear,meaningthatpropertiescannotbeusedastemporary
sleeping accommodation on a permanent basis throughout the year, limiting the potential
impactonlocalamenity.Whilepropertyownerswillstillhavetoseekplanningpermission
from their local authority if they wish to change the use of premises, for example from a
privatehometoahotelorhostel.Itwillalsoremainamatterforlocalplanningauthoritiesto
determinewhetheranunauthorisedchangeofusehastakenplace,andwhethertheyshould
takeplanningenforcementactioninthepublicinterest.107
5.9
Exemptions
TheDeregulationAct2015alsocreatedanewsection25Bofthe1973Actwhichprovidesthat
either the local planning authority or the Secretary of State may direct that the Exception
createdbysection25Aofthe1973Actisnottoapplytocertainresidentialpremisesorto
residential premises located in certain areas. Such a direction may only be given if it is
necessarytoprotecttheamenityofthelocality.
Theseexceptionsaretheresultoftheapprehensionsexpressedaboutthenewlegislation.A
particularconcerncentredontheissuesarisingfromfrequencyoftenantturnoverandthe
natureoftenantswhoaccessedpropertyonashort-termbasis.Otherpointsthatweremade
includedtheriskoflosingexistingfamilyhousingfromthemainstreammarket,andlossof
amenity; fear of crime, noise and disturbance, fire risk and hygiene; short-term use
underminingthecurrentpolicytoincreaseandimprovethelong-termprivaterentedsector;
discouragingdownsizingandfreeingupoflargerhomes;andtheneedtoensureconsistent
regulationofthehotelsectorandshort-termuse.108
107
DepartmentforCommunitiesandLocalGovernment,PromotingthesharingeconomyinLondon.Policyonshort-termuse
ofresidentialpropertyinLondon,February2015,24.
108
DepartmentforCommunitiesandLocalGovernment,PromotingthesharingeconomyinLondon.Policyonshort-termuse
ofresidentialpropertyinLondon,February2015,17.
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Art.45oftheDeregulationAct(2015)“Short-termuseofLondonaccommodation:powerto
relaxrestrictions”,providestheSecretaryofStatewithapowertomakeregulations,subject
totheaffirmativeprocedure,sothatfurtherexceptionstosection25ofthe1973Actmaybe
created (“the Secretary of State may by regulations made by statutory instrument provide
thatsection25(1)oftheGreaterLondonCouncil(GeneralPowers)Act1973doesnotapplyif
conditions specified by the regulations are met”). If regulations are made to create new
exceptions, they must also include provision equivalent to section 25B of the 1973 Act
(insertedbysection44)whichpermitsthelocalplanningauthorityortheSecretaryofState
tomakeadirectionthatthenewexceptionwillnotapplytoparticularresidentialpremisesor
residentialpremisessituatedinaparticulararea.109
Thelocalplanningauthority110ortheSecretaryofStatemaydirectthatsection25Aisnotto
apply: (a) to particular residential premises specified in the direction; (b) to residential
premisessituatedinaparticularareaspecifiedinthedirection.Subsection(3)providesthat
thelocalplanningauthoritymayonlygiveadirectionwiththeconsentoftheSecretaryof
State.Subsection(4)providesthatthedirectioncanberevokedbythepersonwhogavethe
direction.Subsections(5)and(6)providethattheSecretaryofStatemaydelegatehispower
togiveorrevokeadirection,anddirectthatalocalplanningauthoritydoesnotrequirethe
SecretaryofState’sconsenttogiveadirection.
A direction may be given only if the local planning authority or (as the case may be) the
SecretaryofStateconsidersthatitisnecessarytoprotecttheamenityofthelocality.Thelocal
planning authority may give a direction only with the consent of the Secretary of State. A
directionmayberevokedbythepersonwhogaveit,whetherornotanapplicationismade
fortherevocation.TheSecretaryofStatemaydelegatethefunctionsoftheSecretaryofState
to the local planning authority; direct that a local planning authority may give directions
withouttheconsentoftheSecretaryofState.111TheSecretaryofStatecanmakeregulations
inrelationtotheinformationwhichmustbeprovidedbyalocalplanningauthoritywhenitis
109
DeregulationAct(2015),ExplanatoryNotes,CommentaryonSections44-45,215.
“localplanningauthority”hasthesamemeaningasintheTownandCountryPlanningAct1990(seesection336(1).
111
DeregulationAct(2015),ExplanatoryNotes,CommentaryonSections44-45,212.
110
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seeking consent to give a direction, as well as the procedure which should be followed in
connectionwiththemakingorrevocationofadirection.112
TheSecretaryofStatemaybyregulationsmadebystatutoryinstrumentmakeprovision:(a)
astotheprocedurewhichmustbefollowedinconnectionwiththegivingofadirectionorin
connectionwiththerevocationofsuchadirection;(b)astotheinformationwhichmustbe
providedwherethelocalplanningauthorityseekstheconsentoftheSecretaryofStatetothe
givingofadirection.
Afullplanningpermissionincasetoconvertaflatorhouseintoashortterm/holidayletmay
be difficult to obtain. Camden Council, for example, adopted planning policy within the
Council’s Local Development Framework that aim to resist development that changes
permanenthousingtoshortstayaccommodation/holidaylets,ontheassumptionthatshort
term letting can disturb neighbours, with visitors creating noise, sometimes at unsociable
hours;thathighturnoverofvisitors/renterscanalsoimpactonpermanentoccupiersreducing
thesenseofcommunityandraisingthefearofcrime;thattheshorttermlettingofresidential
propertiesalsoreducesthepermanenthousingstock.Incaseofunauthorisedchangeofuse
forwhichplanningpermissionwillberequired,theCouncilcantakeappropriateenforcement
actionwhichcanincludeservinganEnforcementNoticetorequiretheusetocease.113
5.10 Enforcement
Whereapropertyhaschangeditsuse,forexamplewhereahouseisbeingusedasahotelor
hostel, this would require planning permission. If a change of use occurs without planning
permission,thelocalplanningauthoritycanconsidertakingenforcementaction.
The National Planning Policy Framework clarifies that effective planning enforcement is
importantasameansofmaintainingpublicconfidenceintheplanningsystem.Enforcement
actionisdiscretionary,andlocalplanningauthoritiesshouldactproportionatelyinresponding
to suspected breaches of planning control. Local planning authorities should consider
112
Art.44,subsection7,DeregulationAct(2015),Short-termuseofLondonaccommodation:relaxationofrestrictions.
http://www.camden.gov.uk/ccm/content/environment/planning-and-built-environment/two/planningapplications/before-you-apply/residential-and-business-projects/short-term-lettings/.
113
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publishing a local enforcement plan to manage enforcement proactively, in a way that is
appropriatetotheirarea.Thisshouldsetouthowtheywillmonitortheimplementationof
planningpermissions,investigateallegedcasesofunauthoriseddevelopment,andtakeaction
whereitisappropriatetodoso.114
With specific reference to the accommodation sector, the Government recommends that
Regulations for those providing accommodation should be proportionate to the scale of
operation(i.e.someonerentingoutaspareroomafewnightsayearshouldnotbesubjectto
thesamelevelofregulationasabusinessrentingout100roomsyear-round).115
5.11 Sublet
Thetenantmustnotassignorsubletthewholeoranypartoftheproperty.Thisclauseisin
thestandardtenancyagreement,locatedinthewebsiteoftheGovernment.However,the
GovernmentannouncedtoitsresponsetotheRecommendationofDebbieWosskowthatit
will amend its model agreement for an assured short hold tenancy by summer 2015, to
providethattenantsinprivaterentedaccommodationcanrequesttheirlandlord’spermission
tosub-letorotherwisesharespace,onashort-termbasis.116Althoughthewebsitehasan
updatedversionofthestandardtenancyagreement,theprohibitionofsublettingremainsso
far.
5.12 Otherregulations
Regulation for those providing accommodation should be proportionate to the scale of
operation.Forexample,theFireSafetyOrder2005isbasedontheprincipleofproportionality,
ratherthanprescription.TheFireSafetyOrderappliestoanyonewhohasapropertyforwhich
someonepaystostay,otherthantolivethereasapermanenthome.Ifsomeonehasany
114
DepartmentforBusiness,innovationandSkills,Indipendentreviewinthesharingeconomy.Governmentresponse,March
2015,2.8.
115
DepartmentforBusiness,innovationandSkills,Independentreviewinthesharingeconomy.Governmentresponse,March
2015,Chapter2.
116
DepartmentforBusiness,innovationandSkills,Independentreviewinthesharingeconomy.Governmentresponse,March
2015. This document was issued in response to D. Wosskow, Unlocking the sharing economy. An independent review,
November2014.
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payingguests,eveninherownhome,shemustcomplywiththelawonfiresafetyandcarry
outariskassessment.
Assuming that there is no “one size fits all” to fire safety, it requires a responsible person
(usuallytheemployerortheowner)toassesstheriskfromfireintheirparticularpremises
andusethisassessmenttodeterminewhatfireprecautionsaresufficienttoreducetherisk
tolifetoaslowasreasonablypracticable.Theresponsiblepersonneedtouseherjudgment
todecidewhatfireprecautionsareappropriateinthelightoftheparticularcircumstances
andthoseofguests.Ifthepremisesaresimilartoafamilyhome,thefiresafetyprecautions
arelikelytobesimplerthanthoseneededforlargerpremiseswithmorecomplicatedlayouts
andstaff.However,thereisnoabsolutedefinitionof“small”premises,soprovidersmustuse
theircommonsense.Theresponsiblepersonwillneedtousetheirjudgementtodecidewhat
fireprecautionsareappropriateinthelightoftheirparticularcircumstancesandthoseoftheir
guests.117
The“HousingHealthandSafetyRatingSystem”(HHSRS)providesanobjectiveassessmentof
theextenttowhichapropertycontainshazardsandthelikelihoodofharmoccurringtothe
occupier(s) as a result. This HHSRS is the Government’s approach to the evaluation of the
potentialriskstohealthandsafetyfromanydeficienciesidentifiedindwellings.Althoughnot
in itself a standard, it has been introduced as a replacement for the Housing Fitness
Standard.118 The underlying principle of the HHSRS is that any residential premises should
provideasafeandhealthyenvironmentforanypotentialoccupierorvisitor.119
ThisHHSRSdoesnotsetoutminimumstandards.Itisconcernedwithavoidingor,atthevery
least, minimizing potential hazards. The scoring system for hazards is prescribed by the
HousingHealthandSafetyRatingSystem(England)Regulations2005(SI2005No3208)andis
alsosetoutinthestatutoryHHSRSOperatingGuidanceforlocalauthorities.120Installations
117
DepartmentforBusiness,innovationandSkills,Independentreviewinthesharingeconomy.Governmentresponse,March
2015,2.2.
118
HousingAct1985,s604,asamendedbytheLocalGovernmentandHousingAct1989.
119
OfficeoftheDeputyPrimeMinister:London,HousingHealthandSafetyRatingSystemOperatingGuidanceHousingAct
2004GuidanceaboutinspectionsandassessmentofhazardsgivenunderSection9,1.12(February2006).
120
Local authorities already have powers under the Housing Act 2004 to assess the risks and hazards in all residential
propertiesusingtheHousingHealthandSafetyRatingSystem.
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IMPULSEPAPERNO.02
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coveredare:water,gasandelectricity;personalhygienecoversinstallations;sanitationand
drainage;foodsafety;ventilation;spaceandwaterheatinginstallations.121
This existing legislation, such as that imposing health and safety requirements, remains in
placeforpropertiesbeingletoutonashort-termbasisevenafterthereformthattookplace
in2015.122Forexample,HHSRSisapplicabletoshort-termrents,sinceusingtheHHSRSmeans
thatevenanunoccupieddwellingcanbechecked(itisthedwellingbyitselfwhichischecked,
not the dwelling with the current occupants). So, the hazard score produced by the local
authorityofficerstayswiththedwellingevenifthereisachangeofoccupiersandstaysuntil
workhasbeendonetominimiseanyhazards.Further,whenroomsandareasareshared,the
checkorassessmenthastolookatanypossibleincreaseinthelikelihoodand/oroutcomes
whichcouldhappenasaresultofthesharing.Itmustalsotakeintoaccountthenumberof
otherdwellingssharingroomsandareas.Forinstance,thechanceofariskofinfectionmight
begreaterbecauseofsharing,orapersonlivinginthedwellingthatisbeingratedmaybe
understressbecauseofthesharing.123Ifapropertyisfoundtocontainserioushazards,the
localauthorityhasadutytotakethemostappropriateaction.Thiscouldrangefromtryingto
dealwiththeproblemsinformallyatfirst,toprohibitingtheuseofthewholeorpartofthe
dwelling,dependingontheseverityofthehazard.Localauthoritiesalsohavepowerstocarry
outemergencyremedialworksifnecessary.
Building Regulations require the provision of smoke alarms in all new dwellings but, at
present, landlords are not legally required to install or maintain smoke alarms in their
properties. A non-regulatory approach to increase smoke alarm installation in the private
rentedsectorhasbeendeployed,includingtargetednationalawarenessactivity,anddirect
retrofitting of smoke alarms by fire authorities and their partners. This approach has seen
deathsinthehomereducedby60%inthelast30years.ItisarequirementoftheBuilding
121
DepartmentforCommunitiesandLocalGovernment,HousingHealthandSafetyRatingSystemGuidanceforLandlords
andPropertyRelatedProfessionals,May2006,5ss.
122
DepartmentforCommunitiesandLocalGovernment,PromotingthesharingeconomyinLondon.Policyonshort-termuse
ofresidentialpropertyinLondon,February2015,25.
123
DepartmentforCommunitiesandLocalGovernment,HousingHealthandSafetyRatingSystemGuidanceforLandlords
andPropertyRelatedProfessionals,May2006,10-13.
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Regulationsthatacarbonmonoxidealarmmustbeinstalledinanypropertywhenasolidfuel
heatingsystem,forexample,awoodburningstove,isfirstinstalled.Thereisnorequirement
foranyotherpropertytohaveacarbonmonoxidealarm.
Landlordsareunderagenerallegaldutytoensurethatelectricalinstallationsintheproperty
are safe and kept in good working order. The Electrical Safety Council recommends that
electricalinstallationsinrenteddwellingsshouldbecheckedbyaqualifiedelectricianevery5
yearsandthatavisualinspectionofelectricalsocketsshouldbeundertakenonachangeof
tenancy.Ontheissueofworkingsmokealarms,aDiscussionpaperonimprovingProperty
Conditions in the Private Rented Sector has been issued by the the Department for
CommunitiesandLocalGovernment(DCLG)in2014.
5.13 Taxation
UKadopteda“RentaRoomScheme”whichallowshouseholderstoearnanadditional£4,250
ayeartaxfree(theGovernmentannouncedthisthresholdtoclimbto£7,500inApril2016).
Eligiblearethosewhoareresidentlandlords,whetherornottheyownthehouse,whoreceive
rentfromlettingfurnishedaccommodationintheironlyormainhome,andthosewhoruna
bedandbreakfastoraguesthouse.
Rent-a-Roomdoesnotapplytoincomefromaccommodationusedasanofficeorforbusiness
otherthanbygenuinelodgers(forexample,studentswhoareprovidedwithstudyfacilitiesin
theirlodgings,orlodgerswhodosomeworkinyourhomeintheeveningsorweekends).The
beneficiariesofthisallowanceshouldbeliableforcounciltax.Ifgrossreceiptsaremorethan
£4,250itispossibletochoosebetweenpayingtaxonactualprofit(grossrentsminusactual
expensesandcapitalallowances),orgrossreceipts(andanybalancingcharges)minus£4,250
–withnodeductionforexpensesorcapitalallowances.124
The standard personal allowance is applicable in collaborative economy services as well
(£10,600). According to the UK VAT Guidelines, there seems to be no different threshold
124
https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme.
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depending on the activity pursued. Anybody must register for VAT with HM Revenue and
Customs(HMRC)ifhisbusiness’VATtaxableturnoverismorethan£82,000.
HMRCiscommittedtomakingiteasierforpeopleparticipatinginthesharingeconomyto
understand their tax obligations and report their income to HMRC. This includes plans to
produce targeted bespoke guidance for the sharing economy.125 Further, Government
recommendsthatHMRevenueandCustoms(HMRC)andHMTreasuryshouldcreateaguide
totaxinthesharingeconomy,andanonlinetaxcalculatortohelpusersofsharingeconomy
servicestoeasilyworkouthowmuchtaxtheyareliabletopay.126
5.14 Platforms.Liabilityandduties
5.14.1 ElectronicCommerce(ECDirective)Regulations2002
Directive 2000/31 was incorporated into national law by the Electronic Commerce (EC
Directive)Regulations(ElectronicCommerce(ECDirective)Regulations2002.Toencourage
onlinebusiness,inaccordancewitharticle4(1)oftheE-CommerceDirective,thisregulation
provides that the taking up and pursuit of the activity of an information society service
providermaynotbemadesubjecttopriorauthorisationortoanyotherrequirementhaving
equivalenteffect,nosuchrequirementsexistinUKlaw,wheretherearespecificauthorisation
requirementsbutonlyfortheplatformsofferingcrowdfunding,peer-topeerlendingservices.
EvenbeforethetranspositionoftheE-CommerceDirective,theUnitedKingdomwasthefirst
Europeancountrytoadoptaspecificlegislationtolimitonlineintermediaryliability,although
thislegislationwaslimitedtodefamation.127
Alsothequestionofplatforms’liabilityaroseforthefirsttimethankstoapreliminaryruling
filedbytheHighCourtofJustice(EnglandandWales),asaresultofalawsuitfiledbyL’Oreal
125
https://www.gov.uk/vat-businesses/how-vat-works.
DepartmentforBusiness,innovationandSkills,Indipendentreviewinthesharingeconomy.Governmentresponse,March
2015,1.23.
127
TheDefamationActof1996introducedan“innocentdissemination”,andexemptedonlineintermediariesfromliability
forthirdpartymaterials.Seehttp://www.legislation.gov.uk/ukpga/1996/31/contents.
126
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and its subsidiaries companies (Lancome and Garnier) against eBay, in regards to the
marketingofL’OrealproductsthrougheBaywithoutitsconsent.Thispreliminaryrulinglater
leadedtotheECJdecisioninthefamousL'OréalveBay(seeinfra).128
Following the distinction traced by the Directive, UK courts distinguish between service
providers that only facilitate infringements by a third party, and service providers that
authoriseinfringementsbyathirdparty.129
5.14.2 EnterpriseandRegulatoryReformAct2013
Anewpieceoflegislation,EnterpriseandRegulatoryReformAct2013,introducednovelrules
applicabletoalllettingandmanagingagentsinEngland.
Lettingagentsarealreadysubjecttoconsumerprotectionlegislationandwhereagentsarein
breachofthislegislation,actioncanbetakenagainstthembytradingstandardswhohave
civil and criminal enforcement powers. In addition to existing duties, Enterprise and
Regulatory Reform Act 2013 requires letting agencies to belong to an approved redress
scheme.
Art.83,sec.1,EnterpriseandRegulatoryReformAct2013rulesthat:
“TheSecretaryofStatemaybyorderrequirepersonswhoengageinlettingsagencyworkto
be members of a redress scheme for dealing with complaints in connection with that work
which is either a redress scheme approved by the Secretary of State, or a government
administeredredressscheme”.
A“redressscheme”isasystemwhichprovidesforcomplaintsagainstmembersofthescheme
tobeinvestigatedanddeterminedbyanindependentperson;a“governmentadministered
128
129
(CaseC-324/09.
Buntv.Tilley,[2006]EWHC407(QB).
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redress scheme” means a redress scheme which is administered by or on behalf of the
SecretaryofState,anddesignatedforthepurposesoftheorderbytheSecretaryofState.130
Underthisnewlegislation,thesameinterpretiveissuerelatedtoecommerceDirective,on
theactiveorpassiveroleroleofpeer-to-peerplatforms,canberaised,sincetheadoptionof
theabovementionedredressschemedependsonthedefinitionsof“lettingagencywork”:
Onthisaspect,art.83,sec.7-8,ofEnterpriseandRegulatoryReformAct2013,providesthat:
7.Inthissection“lettingsagencywork”meansthingsdonebyanypersoninthecourseofa
businessinresponsetoinstructionsreceivedfrom:
(a)apersonseekingtofindanotherpersonwishingtorentadwelling-houseinEnglandunder
adomestictenancyand,havingfoundsuchaperson,tograntsuchatenancy(“aprospective
landlord”);
(b)apersonseekingtofindadwelling-houseinEnglandtorentunderadomestictenancyand,
havingfoundsuchadwelling-house,toobtainsuchatenancyofit(“aprospectivetenant”).
8.However“lettingsagencywork”doesnotincludeanyofthefollowingthingswhendoneby
apersonwhodoesnootherthingsfallingwithinsubsection(7)
(a)publishingadvertisementsordisseminatinginformation;
(b)providingameansbywhich
(i) a prospective landlord or a prospective tenant can, in response to an advertisement or
disseminationofinformation,makedirectcontactwithaprospectivetenantor(asthecase
maybe)prospectivelandlord;
(ii)aprospectivelandlordandaprospectivetenantcancontinuetocommunicatedirectlywith
eachother.
Notably, the rules do not introduce any restriction to the provision of services. Quite the
contrary,byadoptingaredressschemeforlettingagencyworktheEnterpriseandRegulatory
130
Art.83,sec.2-3.
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ReformAct2013delegatesasignificantpartofgovernancetoplatformsinconsonancewith
EUlawprinciples(seeinfra).
5.15 Homeswap
5.15.1 Moneyandremuneration
According to a widespread definition, money is the medium of exchange authorized or
adoptedbyagovernmentaspartofitscurrency.131Remuneration(orprice)is“theamount
ofmoneyorotherconsiderationaskedfororgiveninexchangeforsomethingelse”.132Money
orotherconsiderationcanconstituteremuneration.
Under English law, a promise is binding as a contract only if supported by some
“consideration”,whichmeansthatsomethingofvaluemustbegivenforapromiseinorder
to make it enforceable as a contract. While a gratuitous promise does not amount to a
contract.Considerationis“somethingofvalueintheeyeofthelaw”133or,inotherwords,
“thepriceforwhichthepromiseisbought”,accordingtothedefinitionadoptedbytheHouse
ofLords.134
For a valid consideration, a performance or a return promise must be bargained for. A
performanceorareturnpromiseisbargainedforifitissoughtbythepromisorinexchange
forhispromiseandisgivenbythepromiseeinexchangeforthatpromise.Performancemay
consist of an act other than a promise, a forbearance or the creation, modification, or
destruction of a legal relation. The performance or return promise may be given to the
promisorortosomeotherperson.135
131
Black'sLawDictionary(10thed.2014)
Black'sLawDictionary(10thed.2014).
133
Thomasv.Thomas(1842);ReHudson(1885).
134
Dunlop Pneumatic Tyre Co. Ltd. v. Selfridge Ltd. (1915) A.C. 847, 855. This definition was first offered by F. Pollock,
Principlesofcontract.
135
Thisconclusioncanbefoundindisparateauthors:rangingfromthosemoreinfluencedbyacivilianapproach,suchasP.S.
Atiyah(SeeThelawofcontract)tothosemoreinfluencedbythetraditionalcommonlawlegalcategories,suchasG.H.Treitel
(SeeThelawofcontract).
132
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5.15.2 Mutualpromisesandconsideration
Mutualpromisesareregardedasconsiderationforeachother.Thismeansthatperformance
andcounterperformanceareinterconnected.Itfollowsthatacontractingpartymusthave
performedherdutiesunderthecontract,inordertomaintainanactionforanagreedsum.
Otherwise,onlydamagescanbeclaimed.“Youcannotclaimremunerationunderacontract
if you have not earned it; if you are prevented from earning it, your only remedy is in
damages”.136Incaseofbreach,aclaimbasedon“quantummeruit/valebat”applies,andthe
plaintiffmaysuethedefendantforareasonableamountofmoney.137
5.15.3 QualificationofhomeswapunderEnglishlaw
Homeexchange/swapisthetemporarypeertopeerexchangeofhomes,usuallyforholidays.
UnderEnglishlawhomeswapcanbeseenasacontract,withavaluableconsiderationsince
both parties confer “something of value in the eye of the law” on the other one, while
obtainingsomethingofvalueforthemselvesasanexchange.Insum,homeswapcanbeseen
as a contract with a valid consideration, consisting in the exchange of one commodity or
serviceforanotherwithouttheuseofmoney.
Home swap often takes the form of a detailed written agreement between two parties to
swaptheirhomesforagivenperiodoftime,althoughverbalagreementsarealsofrequent.
Theexchangecanbesimultaneous,whenittakesplaceinthesameperiod,oritcanoccurin
different moments. In this latter case, the exchange system if often coupled with a credit
systemthatcanberedeemedatalaterdate,solesseningpotentialschedulingproblemsthat
canhamperstraighthomeswaps.Usuallynomonetaryexchangetakesplace.
Despite the absence of money, potential risks connected to this kind of exchange are not
negligible, and online platforms play an important role in guaranteeing the fairness of the
136
137
TheAlaskanTrader(1984).
F.H.Lawson,RemediesofEnglishlaw.
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exchange and the prevention and/or resolution of disputes; platforms may require prior
registration of the parties, check parties’ reliability, provide penalties in case of
breach/damages,andrecommendtotakeupinsurance.Platformsmayalsoprovidedetailed
guidance on how to arrange a swap or even arrange it. Most platforms do not accept
responsibilityfordamagesassociatedwithanyexchange.Homeswapisnotregulatedunder
UKlawandnocourtdecisionhasbeenfounddealingwiththiscontract.
5.16 Conclusions
WiththeamendmentofSection25oftheGreaterLondonCouncil(GeneralPowers)Act1973
that took place in March 2015, is now possible to let out spare room or whole houses in
Londoninthesamewayasintherestofthecountry.
With the new rules, while permanent short-term use of a residential property should still
requireplanningpermission,itisnowpossible,undergivenconditions,torentoutaproperty
as a short-term let for up to ninety days a year, and the use as temporary sleeping
accommodationofanyresidentialpremisesinGreaterLondondoesnotconstituteachange
ofuse,forwhichplanningpermissionwouldberequired.
Differentrulesapplytotherestofthecountry,wherethesignificanceofthechange,dueto
theshorttermrentalofagivenpremise,mustbeascertainedineachcase,inordertodecide
whether“materialchangeintheuse”tookplace.
Notably,withspecificreferencetotheaccommodationsector,theGovernmentrecommends
thatregulationsforthoseprovidingaccommodationshouldbeproportionatetothescaleof
operation, that regulation must always be deemed as a last resort and the scope for nonregulatoryalternativesisalwaysexplorednon-regulatoryalternatives.Aflexibleapproachis
alsosuggestedwithregardtoenforcement.
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5.17 Legaltext
DeregulationAct2015
EnterpriseandRegulatoryReformAct2013
TownandCountryPlanningAct1990
TownandCountryPlanning(UseClasses)Order1987
GreaterLondonCouncil(GeneralPowers)Act1973
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6
LEGALASSESSMENTOFTHEIDENTIFIEDMEASURES
6.1
TaskII–Legalassessmentoftheidentifiedmeasures
First, identify whether the applicable legislation which imposes authorisation, licenses and
registration requirements on providers of collaborative economy services and on
intermediation platforms, can be considered a restriction in view of the Services Directive
(Articles 9 to 16 and Article 22) and the e-Commerce Directive (Articles 3 to 5), and
alternatively,inviewofthefreedomtoprovideservicesandfreedomofestablishment(Articles
56and49TFEU).
6.2
Whatisa“service”
Article56TFEU(exArticle49TEC)prohibitsrestrictionsontheprovisionofservicesbetween
MemberStates:
“Within the framework of the provisions set out below, restrictions on freedom to provide
serviceswithintheUnionshallbeprohibitedinrespectofnationalsofMemberStateswhoare
established in a Member State other than that of the person for whom the services are
intended.”
Article49TFEU(exArticle43TEC)providethat:
“Within the framework of the provisions set out below, restrictions on the freedom of
establishmentofnationalsofaMemberStateintheterritoryofanotherMemberStateshall
beprohibited.Suchprohibitionshallalsoapplytorestrictionsonthesetting-upofagencies,
branchesorsubsidiariesbynationalsofanyMemberStateestablishedintheterritoryofany
MemberState.”
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“Freedom of establishment shall include the right to take up and pursue activities as selfemployedpersonsandtosetupandmanageundertakings,inparticularcompaniesorfirms
withinthemeaningofthesecondparagraphofArticle54,undertheconditionslaiddownfor
itsownnationalsbythelawofthecountrywheresuchestablishmentiseffected,subjectto
theprovisionsoftheChapterrelatingtocapital.”
These provisions are complemented by Directive 2006/123/EC on services in the internal
market(“ServicesDirective”),andbysectorspecificregulation.
6.2.1 Purelyinternalsituations
TheprovisionsoftheTreatyonfreedomofestablishmentandfreedomtoprovideservices
applywhenevertheserviceproviderandservicerecipientareestablishedindifferentMember
States.138 This happens when the service provider travels to another state; when it is the
recipientwhotravels139orwherebothrecipientandprovidermeetinathirdstate.140Onthe
contrary,theydonotapplytopurelyinternalsituations.141
Eventhough,accordingtotheirwording,theprovisionsoftheECTreatyconcerningfreedom
ofestablishmentaredirectedtoensuringthatforeignnationalsandcompaniesaretreatedin
the host Member State in the same way as nationals of that State, they also prohibit the
MemberStateoforiginfromhinderingtheestablishmentinanotherMemberStateofoneof
itsnationalsorofacompanyincorporatedunderitslegislation.142Accordingly,therightto
exercisefreedomtoprovideservicesincludesthefreedomfortherecipientsofservicestogo
toanotherMemberStateinordertoreceiveaservice143andalsowhenneithertheprovider
nor the recipient of the service travels, but the service is provided by internet.144 Those
138
CaseC-108/98RI-SANvComunediIschia[1999];Case52/79ProcureurduRoivDebauve[1980]ECR833;Case15/78SG
AlsaciennevKoestler[1978]ECR1971.
139
JoinedCasesC-286/82andC-26/83LuisiandCarbonevMinisterodelTesoro[1984];Case186/87CowanvTrésorPublic
[1989].
140
CaseC-180/89CommissionvItaly[1991];CaseC-398/95SyndesmostonenElladiTouristikonkaiTaxidiotikonGrafeionv
YpourgosErgasias[1997].
141
CaseC-115/78Knoors[1979].
142
Cfr.EuropeanCommission,GuidetotheCaseLawoftheEuropeanCourtofJusticeonArticles49etseq.TFEU.Freedomof
Establishment,Ref.Ares(2016)766693-12/02/2016.See,interalia,CaseC-298/05ColumbusContainerServices[2007].
143
CaseC-55/98Vestergaard[1999].
144
CaseC-62/79SACompagniegénéralepourladiffusiondelatélévisionCoditelv.CinéVogFilms[1980];JoinedCasesC-34-
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considerationsalsoapplywhereacompanyestablishedinaMemberStatecarriesonbusiness
in another Member State through a permanent establishment.145 And the right freely to
provide services may be relied on by an undertaking as against the State in which it is
establishediftheservicesareprovidedforpersonsestablishedinanotherMemberState.146
6.2.2 Remuneration.
Acoreaspectisthattheservicesmustbeprovidedforremuneration,sincegenuinelynoneconomicservicesareexcludedfromthemeaningof“service”underEUlaw.
Article57TFEUprovidesthat“Servicesshallbeconsideredtobe‘services’withinthemeaning
oftheTreatieswheretheyarenormallyprovidedforremuneration,insofarastheyarenot
governedbytheprovisionsrelatingtofreedomofmovementforgoods,capitalandpersons”.
Remuneration need not be money, as long as it can be valued in money.147 Nor does
remunerationneedtobepaidbytherecipientoftheservice.148
Theessentialcharacteristicofremunerationliesinthefactthatitconstitutesconsiderations
for the service in question, and is normally agreed upon between the provider and the
recipientoftheservice(emphasisadded).149
Ontheotherside,noteverypaymenttotheserviceproviderisremuneration,asinthecase
ofapaymentthatconstitutesonlyasmallpartofwhatreceivedinexchangeforaservice,or
whenverysmallpaymentstookplace.150
36/95DeAgostini[1997];CaseC-384/93AlpineInvestmentsvMinistervanFinanciën[1995].
145
CaseC-414/06LidlBelgium[2008].
146
CaseC-384/93AlpineInvestmentsvMinistervanFinanciën[1995].
147
Case C-154/80 Staatsecretaris van Financiëen v Coöperative Aardappelenbewaarplaats [1981]; Case C-288/94 Argos
DistributorsLtdvCCE[1996];CaseC-258/95SöhnevFinanzamtNeustadt[1997].
148
JoinedCasesC-51/96andC-191/97DeliègevAsblLigueFrancophonedeJudo[2000]ECRI-2549
149
CaseC-263/86Humbelv.Belgium[1988].
150
Cfr.D.Chalmers–G.Davies–G.Monti,EuropeanUnionLaw.
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Insum,thosepaymentswhichareessentiallyconsiderationfortheservicesareregardedby
theEuropeanCourtofJusticeasremuneration:“Theessentialcharacteristicofremuneration
thusliesinthefactthatitconstitutesconsiderationfortheserviceinquestion,andisnormally
agreeduponbetweentheproviderandtherecipientoftheservice”.151
Anotheraspectofpotentialinterestforpeer-to-peerservicesintheaccommodationsectoris
related to the motivation of both service providers and recipients. Under EU law, the
motivationofthepayerappearstobeimportanttodefinea“service”,whilethemotivation
oftheproviderisnot.152TheEuropeanCourtofJusticehasruledthatthereisnoneedfor
service providers to seek to make a profit, and the mere fact that they are providing very
importantpublicservicesdoesnotassuchtakethemoutsideofArticle56.153Insum,itisnot
crucialthatproviders“doitforthemoney”,andtheonlyquestionappearstobewhetherthe
serviceproviderreceivesconsiderationfortheiractivities.154
Thisrulingcanbeofpotentialrelevanceforpeertopeerrentalactivities,someofwhichare
predominantlymotivatedbynonmonetaryreasons.Accordingtothementionedcase,such
activitieswouldnonethelessberegardedas“service”.
6.3 Homeswapas“service”underTFUEandServicesDirective
Homeswapisnotregulatedunderanyofthereviewedlegalsystemsandnocourtdecision
hasbeenfound.
If the absence of direct rules implies that no explicit restriction is laid down by national
legislation,itisquestionablewhetherthistransactionfallswithinthescopeoftheServices
Directiveasa“services”.
151
Case263/86HumbelvBelgium[1988]ECR5365
Cfr.D.Chalmers–G.Davies–G.Monti,EuropeanUnionLaw.
153
CaseC-157/99Geraets-SmitsvStichtingZiekenfonds;PeerboomsvStichtingCZGroepZorgverzekeringen[2001]ECRI5473;CaseC-158/96KohllvUniondesCaissesdeMaladie[1998]ECRI-1931.
154
Monti
152
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Admittedly,theServicesDirectivelists,amongothers,realestateandtourismservicesasan
exampleofservicetowhichtheDirectivedoesapplyto(Recital33).155Buttheinterpretive
questionunderscrutinyhereiswhetherhomeswapcanbedescribedasa“self-employed
economicactivity,normallyprovidedforremuneration”(art.4,co.1,n.1).
Tobesure,thisreasoningdoesnotsuggestthathomeswapcannotberegardedasacontract.
Quite the contrary, home swap is a contract with a valid consideration, consisting in the
exchangeofacommodityforanother.Andevenifnomoneyisinvolvedintheexchange,a
valuableconsiderationexists,sincebothpartiesconfer“somethingofvalueintheeyeofthe
law”ontheotherone,whileobtainingasomethingelseforthemselvesasanexchange.
Moreprecisely,absentasetofrulesdevotedtothiskindofexchange,thiscontractclassified
as“atypical”undercivillawcategories(contratsinnomésunderFrenchlaw;contrattiatipici
orinnominatiunderItalianlaw).156Followingtheprincipleofautonomyofthewill,partiesare
freetoconcludeanycontractevenifitisnotexpresslyruledbythelaw.Withnostatutory
discipline,thecontractmustfirstbe“qualified”inordertodeterminewhetheritfallswithin
therealmofonespecificnominatecontractorthatitcompriseselementsofseveralnominate
contracts,interpretingitaccordinglyandapplyingtherelateddiscipline.
Theseconclusionsimplythathomeswapcanbedefinedasasynallagmatic(bilateral)contract,
where both parties confer advantages on the other one, while obtaining a reciprocal
advantage for themselves. Further, it is an onerous contract, since both parties have the
intentiontoconfersuchanadvantageinexchangeforareciprocaladvantage.
However, defining home swap as synallagmatic (bilateral) and onerous contract does not
implyitsframingas“service”inexchangeformoney/remuneration.Notallbilateral,onerous
contract are service, and the case of home swap can be better defined as an “exchange
contract”,ratherthanaservicecontract,wherepartieshaveasymmetricalposition,withno
155
SeealsoCaseC-398/95SyndesmostonenElladiTouristikonkaiTaxidiotikonGrafeionvYpourgosErgasias[1997].
Thisdistinctionholdsonlywithreferencewithcivillawsystems.Incommonlaw,caselawisdefinedbydecisionsthat
alwaysdealwithspecificcontracts.
156
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cleardifferencebetweenproviderandrecipient.Thus,incaseofhomeswapitcanbeargued
that no service for remuneration is provided, but an exchange between two parties takes
place.
6.4
Whatisa“restriction”onservice?
Theconceptof“restriction”coversanymeasuretakenbyaMemberStatewhich,although
applicable without distinction, affect access to the market for undertakings from other
MemberStatesandtherebyhinderintra-Communitytrade.
Art.16,ServicesDirectiveprovidesthat:
MemberStatesshallrespecttherightofproviderstoprovideservicesinaMemberStateother
thanthatinwhichtheyareestablished.TheMemberStateinwhichtheserviceisprovided
shallensurefreeaccesstoandfreeexerciseofaserviceactivitywithinitsterritory.
MemberStatesshallnotmakeaccesstoorexerciseofaserviceactivityintheirterritorysubject
tocompliancewithanyrequirementswhichdonotrespectthefollowingprinciples:
(a)non-discrimination:therequirementmaybeneitherdirectlynorindirectlydiscriminatory
withregardtonationalityor,inthecaseoflegalpersons,withregardtotheMemberStatein
whichtheyareestablished;
(b)necessity:therequirementmustbejustifiedforreasonsofpublicpolicy,publicsecurity,
publichealthortheprotectionoftheenvironment;
(c)proportionality:therequirementmustbesuitableforattainingtheobjectivepursued,and
mustnotgobeyondwhatisnecessarytoattainthatobjective.
6.4.1 Nationality
The first, clearest case of discrimination under art. 16, sec. 2, a), is any distinction in legal
treatmentbasedonnationality.Abolitionofalldiscriminationagainstapersonprovidinga
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serviceongroundsofhisnationalityisthemostplainandindisputableformofdiscrimination
forbiddenbyEUlaw.157
Art.57TFEUprovidesthat:“WithoutprejudicetotheprovisionsoftheChapterrelatingtothe
right of establishment, the person providing a service may, in order to do so, temporarily
pursue his activity in the Member State where the service is provided, under the same
conditionsasareimposedbythatStateonitsownnationals.”
6.4.2 Directandindirectdiscrimination
Rules regarding equality of treatment forbid not only overt discrimination by reason of
nationality or, in the case of a company, its seat, but they also forbid all covert forms of
discriminationwhich,bytheapplicationofothercriteriaofdifferentiation,leadinfacttothe
sameresult.158
EUlawprohibitstheMemberStatesfromlayingdownintheirlawsconditionsforthepursuit
of activities by persons exercising their right of establishment which differ from those laid
downforitsownnationals.159Followingthisrule,MemberStatesmustavoidanyovertor
covertdiscriminationongroundsofnationality.160
Any national measure which, albeit applicable without discrimination on grounds of
nationality, is liable to hinder or render less attractive the exercise by EU nationals of the
freedom of establishment guaranteed by the Treaty constitutes a restriction within the
meaningofArticle49TFEU.
157
CaseC-279/80Webb[1981].
CaseC-330/91TheQueenvInlandRevenueCommissioners,exparteCommerzbank[1993].Althoughthedifferencein
treatmenthasonlyanindirecteffectonthepositionofcompaniesconstitutedunderthelawofotherMemberStates,it
constitutesdiscriminationongroundsofnationalitywhichisprohibitedbyArticle52oftheTreaty.CaseC-1/93Halliburton
ServicesvStaatssecretarisvanFinancïen[1994].
159
Case270/83CommissionvFrance[1986].
160
CaseC-250/95FuturaParticipationsandSingervAdministrationdescontributions[1997].
158
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6.4.3 Residence
Thesecondcaseofdirectdiscriminationisbasedonresidence.Nationalrulesunderwhicha
distinctionisdrawnonthebasisofresidenceareliabletooperatemainlytothedetrimentof
nationalsofotherMemberStates.161
Art.20,ServicesDirective,provides:
1. Member States shall ensure that the recipient is not made subject to discriminatory
requirementsbasedonhisnationalityorplaceofresidence.
2.MemberStatesshallensurethatthegeneralconditionsofaccesstoaservice,whichare
madeavailabletothepublicatlargebytheprovider,donotcontaindiscriminatoryprovisions
relatingtothenationalityorplaceofresidenceoftherecipient,butwithoutprecludingthe
possibilityofprovidingfordifferencesintheconditionsofaccesswherethosedifferencesare
directlyjustifiedbyobjectivecriteria.
Before Services directive explicitly took into account residence, European Court of Justice
ruledonthispoint:“NationallawofaMemberStatecannot,byimposingarequirementasto
habitualresidencewithinthatState,denypersonsestablishedinanotherMemberStatethe
righttoprovideservices,wheretheprovisionofservicesisnotsubjecttoanyspecialcondition
underthenationallawapplicable.”162
TherationalebehindsuchprohibitionisthatthegreatmajorityofnationalsofaMemberState
are resident and domiciled in that State and therefore they meet that requirement
automatically,whereasnationalsofotherMemberStateswould,inmostcases,havetomove
theirresidenceanddomiciletoanotherStateinordertocomplywithsucharequirements.163
161
CaseC-224/97Ciola.vLandVorarlberg[1999].
Case33/74VanBinsbergen[1974].TheECJconcludedthat“byretainingrulesrequiringpatentagentsestablishedinother
MemberStatestobeenrolledontheItalianregisterofpatentagentsandtohavearesidenceorplaceofbusinessinItaly,in
ordertoprovideservicesbeforetheItalianPatentOffice,theItalianRepublichasfailedtofulfilitsobligationsunderArticles
49ECto55EC”.CaseC-131/01Commissionv.Italy[2003].
163
CaseC-221/89Factortame[1991].Theuseofthecriterionoffiscalresidencewithinnationalterritoryforthepurposeof
grantingrepaymentsupplementonoverpaidtaxisliabletoworkmoreparticularlytothedisadvantageofcompanieshaving,
theirseatinotherMemberStates.Indeed,itismostoftenthosecompanieswhichareresidentfortaxpurposesoutsidethe
territoryoftheMemberStateinquestion.SeeCaseC-330/91Commerzbank[1993].
162
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6.5
Directdiscriminationinhome-sharingandshorttermrentals
ThefirstkindofdiscriminationtobeevaluatedinthisImpulsepaperarethoseconnectedwith
nationality and residence. While none of the national rules examined in this paper
discriminateonthegroundofnationalityoftheserviceproviderand/orrecipient,thesame
cannotbesaidaboutresidence.
6.5.1 France(Paris)
UnderFrenchlaw,anyaccommodationrepeatedlyofferedforshortrentrentsdeterminesa
changeinclassificationofthedwelling,fromresidenceintofurnishedpremise.Forthisreason,
anypersonwhorentsoutapremisemustdeclareittothemayorofthemunicipalitywhere
the premise is located164 and, in specific geographical areas (among them, Paris), a prior
authorization subject to a “compensation” is required, allowing the permanent change of
destination.165Insum,rentingafurnishedlodgingrepeatedlyforshortperiodstotransient
guests,whodonotelecttheirdomicileinthelodging,isdeemedasachangeinuse.166
Incaseswhenadeclarationofrentingatouristdwellingmustbesenttothemayorofthe
municipality where the premise is located, the duty to communicate does not apply to
premisesthatarethe“résidenceprincipale”ofthelandlord.Evenmoreimportant,asimilar
exceptionapplieswhenapriorauthorizationissuedbyCityHallisalsorequired,suchasin
Paris;themunicipalitiesofthesuburbs(Hauts-de-Seine,Seine-Saint-DenisandVal-de-Marne);
municipalitieswithmorethantwohundred-thousandsinhabitants.167Alsointhiscase,the
164
Art.L324-1-1,CodeduTourisme.Toutepersonnequioffreàlalocationunmeublédetourisme,quecelui-cisoitclasséou
nonausensduprésentcode,doitenavoirpréalablementfaitladéclarationauprèsdumairedelacommuneoùestsituéle
meublé.
165
Art.L631-7(6)CodedeConstructionetd'Habitation.Laprésentesectionestapplicableauxcommunesdeplusde200000
habitantsetàcellesdesdépartementsdesHauts-de-Seine,delaSeine-Saint-DenisetduVal-de-Marne.Danscescommunes,
le changement d'usage des locaux destinés à l'habitation est, dans les conditions fixées par l'article L. 631-7-1, soumis à
autorisationpréalable.
166
Art.L631-7,Codedelaconstructionetdel'habitation.Lefaitdelouerunlocalmeublédestinéàl'habitationdemanière
répétéepourdecourtesduréesàuneclientèledepassagequin'yélitpasdomicileconstitueunchangementd'usageausens
duprésentarticle.
167
Art.L631-7(6)CodedeConstructionetd'Habitation.Laprésentesectionestapplicableauxcommunesdeplusde200000
habitantsetàcellesdesdépartementsdesHauts-de-Seine,delaSeine-Saint-DenisetduVal-de-Marne.Danscescommunes,
le changement d'usage des locaux destinés à l'habitation est, dans les conditions fixées par l'article L. 631-7-1, soumis à
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authorizationtochangetheuseisnotnecessarywhenthepremiseistheprincipalresidence
ofthelandlord.168Whenthedwellingistheprimaryresidenceanexceptionappliesandnone
oftheseformalitiesappliesto“résidenceprincipale”.169
Given those premises, it is clear that the distinction between “résidence principale” and
“résidencesécondaire”isofparamountimportance,sinceanexceptiontoprescribedrules
appliesincaseof“résidenceprincipale”withregardtocommunications,authorisationsand
compensations.
Notably, under French law the main residence is any dwelling occupied for at least eight
monthsayear,inaccordancewiththemeaningsdevisedbytheCodedelaconstructionetde
l'habitation;unlessthereareprofessionalobligations,healthorforcemajeure,thatoccurred
eithertothelessee,herpartnerorherdependentfamilymembers.170Followingthisrule,in
ordertoberegardedas“résidenceprincipale”theaccommodationcannotremainunoccupied
byresidentsformorethan120daysperyear.Therefore,anaccommodationthatisrented
outformorethan120daysinasolaryearisregardedasa“résidencesécondaire”.
In order to understand how the distinction between “résidence principale” and “résidence
sécondaire”mayconstitutearestrictionintheprovisionofservicesunderEUlaw,andtoverify
whetherthisrestrictionisbasedonanunlawfuldiscrimination,rulesapplicableto“résidence
principale”and“résidencesécondaire”mustbeseenincombinationwiththoseonresidency.
autorisationpréalable.
Lorsquelelocalàusaged'habitationconstituelarésidenceprincipaleduloueur,ausensdel'article2delaloin°89-462du
6juillet1989tendantàaméliorerlesrapportslocatifsetportantmodificationdelaloin°86-1290du23décembre1986,
l'autorisationdechangementd'usageprévueàl'articleL.631-7duprésentcodeoucelleprévueaupresentarticlen'estpas
nécessairepourlelouerpourdecourtesduréesàuneclientèledepassagequin'yélitpasdomicile(ArticleL631-7-1Aalinéa
5).
169
Art.L324-1-1CodeduTourisme.Cettedéclarationpréalablen'estpasobligatoirelorsquelelocalàusaged'habitation
constituelarésidenceprincipaleduloueur,ausensdel'article2delaloin°89-462du6juillet1989tendantàaméliorerles
rapportslocatifsetportantmodificationdelaloin°86-1290du23décembre1986.
170
Art.2,Loin°89-462du6juillet1989tendantàaméliorerlesrapportslocatifsetportantmodificationdelaloin°86-1290
du23décembre1986,ModifiéparLOIn°2014-366du24mars2014-art.1.Larésidenceprincipaleestentenduecommele
logementoccupéaumoinshuitmoisparan,saufobligationprofessionnelle,raisondesantéoucasdeforcemajeure,soitpar
lepreneurousonconjoint,soitparunepersonneàchargeausensducodedelaconstructionetdel'habitation.
168
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ThedeterminationofresidencystatusinFranceisgovernedbyageneralruleprovidingthat
thosewhospendatleast183dayspercalendaryearinFrancearedeemedtoberesident.
Alternatively,apersonwouldalsobedeemedtoberesidentifanyoneoftheseconditions
apply:havingthemainhomeinFrance;carryingonaprofessionalactivityinFrance(either
self-employedorasanemployee);havingthecentreofeconomicinterestsinFrance.171
Combiningtheserules,itisapparentthattheexemptionforthe“résidenceprincipale”havea
disparateimpactonresidentsandnon-residents,sinceitmayonlybenefitresidents,i.e.those
whohavebeenlivinginFranceforatleast183ayear.Thefactitselfoflivinginadwellingfor
atleasteightmonthsayearmakestheoccupieraFrenchresident.Onthecontrary,notall
residentsbenefitfromtheseexemptions.Adwellingthatisnotoccupiedforatleasteight
months a year is deemed as “résidence secondaire” and is subject to the above described
formalities,evenifthelandlordisaFrenchresident.
Thedisparateimpactofthisregulationonresidentsandnon-residentsmaycreateanobstacle
tothefreeprovisionofservices,capableofhinderingtheexerciseofthisfreedomandtodeter
theprovisionofservicesbyforeigners,preventingthemfromfreelypursuingtheiractivities
on account of disproportionate costs. And this conclusion is especially true in cases of
authorisation with compensation, since in this case the difference may have a significant
economicburdenonthoseprovidingashorttermrentalservice.172Evenmoreimportant,the
economicburdenissignificantlydifferent,dependingonwherethepremisetobeconverted
islocated,whetherornotinthesamearrondissementoftheconvertedpremise.
171
Accordingtoart.4B,CodeGénéraldesImpôts(CGI):“1.SontconsidéréescommeayantleurdomicilefiscalenFranceau
sensdel'article4A:a.LespersonnesquiontenFranceleurfoyeroulelieudeleurséjourprincipal;b.Cellesquiexercenten
France une activité professionnelle, salariée ou non, à moins qu'elles ne justifient que cette activité y est exercée à titre
accessoire;c.CellesquiontenFrancelecentredeleursintérêtséconomiques.2.Sontégalementconsidéréscommeayant
leur domicile fiscal en France les agents de l'Etat qui exercent leurs fonctions ou sont chargés de mission dans un pays
étrangeretquinesontpassoumisdanscepaysàunimpôtpersonnelsurl'ensembledeleursrevenus.”Art.4A,oftheCode
GénéraldesImpôts(CGI),statesthat:“LespersonnesquiontenFranceleurdomicilefiscalsontpassiblesdel'impôtsurle
revenuenraisondel'ensembledeleursrevenus.CellesdontledomicilefiscalestsituéhorsdeFrancesontpassiblesdecet
impôtenraisondeleursseulsrevenusdesourcefrançaise.”
172
Asalreadyobserved,eveniftherearenoofficialpricesforpurchaseof“compensation”andpricesarenegotiatedbetween
thebuyerandseller,varyingdependingonwheretheislocated,theaveragepriceinParisisaround€1,600persquaremeter,
withverysignificantdifferences,rangingfrom€400perm²upto€3,000perm²(especiallyinthosewest/centerdistrictsof
Paris, where the demand for shot term rentals is particularly strong). See http://www.paris.fr/services-et-infospratiques/urbanisme-et-architecture/demandes-d-autorisations/exercer-une-activite-dans-un-logement-172#autorisation3-le-changement-d-usage-a-caractere-reel-avec-compensation_5.
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Insum,whiletheformalitiesforrentingoutadwellingthatisnot“résidenceprincipale”are
applicabletobothresidentsandnon-residents,theapplicationofmorefavourablerulesfor
“résidenceprincipale”mayshowabiasforresidents,beingrelatedtotheoccupationofthe
rented premise by the landlord for at least eight months a year – a condition that only
residentsmayfulfil.
6.5.2 Italy(Rome,Milan)
Norulehasbeenfound,bothatnationalandregionallevel,thatmakeadistinctionbetween
Italians and non Italians and/or residents and non-residents, potentially relevant for the
provisionsofservicesintheshorttermrentalsector.Thisconclusionholdsregardlessthelegal
treatmentoftheshorttermrental–whetherasaregularleasefortouristicpurpose,regulated
bytheItaliancivilcode(art.1571ff.),oras“non-hoteltouristicactivity”,regulatedbyregional
laws.
6.5.3 UnitedKingdom(London)
IntheUKapersonmaybeabletorentherresidentialproperty,providedthatitdoesnot
amounttoamaterialchangeinuse,forwhichaplanningpermissionisrequiredunderthe
TownandCountryPlanningAct1990.
UntilMarch2015the“useastemporarysleepingaccommodationofanyresidentialpremises
inGreaterLondoninvolvedamaterialchangeofuseofthepremisesandofeachpartthereof
whichissoused”173,thereforerequiringplanningpermission.
AsthislawwasamendedinMarch2015,whentheDeregulationAct2015prescribedthatthe
useastemporarysleepingaccommodationofanyresidentialpremisesinGreaterLondondoes
notconstituteachangeofuse(forwhichplanningpermissionwouldberequired)ifcertain
conditionsaremet:thefirstconditionstatesthattheuseofapremiseastemporarysleeping
accommodationinonecalendaryearmustnotexceedninety;thesecondconditionisthatthe
173
Section25oftheGreaterLondonPowersAct1973.
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personwhoprovidedthesleepingaccommodationmustbeliabletopaycounciltax.Those
liabletopaythistaxaretheowner,tenantoroccupier,withnoreferencetoresidents.174In
sum, while a marginal relevance can be attached under UK law to residence in short term
rentalsoutsideLondon(seeinfra),thiselementisirrelevantinGreaterLondon.
6.5.4 UnitedKingdom(outsideLondon)
IntheUKapersonmaybeabletorentherresidentialproperty,providedthatitdoesnot
amounttoamaterialchangeinuse,forwhichaplanningpermissionisrequiredunderthe
TownandCountryPlanningAct1990.
Asageneralrule,localplanningauthoritiesmustpondereachcase,takingintoaccountallthe
relevantelements.Amongthem,apotentialrelevanceisalsogiventowhethertheproperty
ownersliveinthepropertywhilstitisusedasashorttermlet(i.e.providedthatahouseis
primarilyusedasahomefirst,andshort-termlettingaccommodationasasecondaryuse).175
Followingthisconclusion,residencemaybearelevantelement,togetherwithotherones,in
ordertodecidewhethera“materialchangeofuse”tookplaceinagivencase.However,no
automaticdistinctionbetweenresidentsandresidentsapplies.
6.6
Indistinctlyapplicable(non-discriminatory)measures
Itissettledcase-lawthatallmeasureswhichprohibit,impedeorrenderlessattractivethe
exerciseofthefreedomofestablishmentmustberegardedasrestrictionsofthatfreedom.176
174
https://www.cityoflondon.gov.uk/services/council-tax/Pages/who-pays-council-tax.aspx.
DepartmentforCommunitiesandLocalGovernment,ReviewofPropertyConditionsinthePrivateRentedSector,February
2014,48-50.
176
Case C-55/94 Gebhard v Consiglio dell’ordine degli avvocati e procuratori di Milano [1995]; Case C-79/01 Payroll and
Others [2002]; Case C-442/02 Caixa Bank France [2004]; Case C-157/07 Krankenheim Ruhesitz am WannseeSeniorenheimstatt[2008].
175
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According to the Court’s case-law, Article 56 TFEU requires not only the elimination of all
discriminationongroundsofnationality,againstprovidersofserviceswhoareestablishedin
another Member State, but also the abolition of any restriction, even if it applies without
distinctiontonationalprovidersofservicesandtothoseofotherMemberStates,whichis
liable to prohibit or further impede the activities of a provider of services established in
anotherMemberStatewherehelawfullyprovidessimilarservices”.177
6.6.1 Regulationandtaxation
RulesofaMemberStatedonotconstitutearestrictionwithinthemeaningoftheECTreaty
solelybyvirtueofotherMemberStatesapplyinglessstrict,ormorecommerciallyfavourable,
rules to providers of similar services. On the other hand, even laws which are equally
applicable,butinpracticerequireforeignserviceproviderstoadapttheirbusinessmodels,or
amend their service in order to provide those services in another state, will tend to be
exclusionary,andthereforefallwithinArticle56.178
Inprinciple,taxationbyMemberStateisnotexcludedfromthescopeofthedisciplineon
freedom to provide services. According to settled case-law, although direct taxation falls
withinthecompetenceoftheMemberStates,MemberStatesmustexercisethatcompetence
consistently with European law and therefore avoid any overt or covert discrimination on
grounds of nationality.179 Such a system, which is in conformity with the fiscal principle of
territoriality,cannotberegardedasentailinganyovertorcovertdiscrimination,prohibitedby
theTreaty.180
Whenataxisapplicablewithoutdistinctiontoanyprovisionofservicesintheterritoryofthe
municipalityconcerned-anddonot,therefore,drawanydistinctionbasedontheplaceof
177
CaseC-544/03MobistarvCommunedeFléron[2005];JoinedCasesC-369/96andC-376/96Arblade[1999];CaseC-165/98
MazzoleniandISA[2001];CaseC-49/98Finalarte[2001];CaseC-350/07KattnerStahlbau[2009].
178
CaseC-518/06CommissionvItaly[2009];CaseC-384/93AlpineInvestmentsvMinistervanFinanciën[1995].
179
CaseC-279/93Schumacker[1995];CaseC-80/94Wielockx[1995];CaseC-107/94Asscher[1996].
180
CaseC-250/95Futura&Singer[1997].
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establishmentoftheproviderorrecipient–thereisnorestriction.181Further,whentaxisset
atalevelwhichmaybeconsideredmodestinrelationtothevalueoftheservicesprovided,
suchataxisnotonanyviewliabletoprohibit,impedeorotherwisemakelessattractivethe
provision of services to be carried out in the territory of the municipalities concerned
(including the case of cross-border provision of services, on account of the place of
establishmentofeithertheproviderortherecipientoftheservices).Inotherwords,sucha
taxdoesnotimpedeormakelessattractivetheprovisionofservices.182
6.6.2 Authorizationsandbureaucraticprocedures.
Bureaucracyhavelongbeenidentifiedasamajorobstacletothefreemovementofservices.
AnationalrulewhichmakestheestablishmentofanundertakingfromanotherMemberState
conditional upon the issue of prior authorisation falls within the category of “restriction”,
sinceitiscapableofhinderingtheexerciseoffreedomofestablishmentbypreventingthat
undertakingfromfreelypursuingitsactivitiesthroughafixedplaceofbusiness.
First,theundertakingmayhavetobeartheadditionaladministrativeandfinancialcostswhich
anysuchgrantofauthorisationentails.Secondly,thesystemofpriorauthorisationactsasa
bar to self employed activity for economic operators who do not satisfy predetermined
requirements,whosecomplianceisaconditionfortheissueofthatauthorisation.183Further,
thepublicinterestcriterion,towhichthegrantoftheadministrativeauthorisationconcerned
is subject, may open the way for an arbitrary use of the discretion on the part of the
competent authorities, permitting them to refuse that authorisation to certain interested
operators,althoughtheyfulfiltheotherconditionslaiddownbythelegislation.184
Apriorauthorisationproceduredoesnotcomplywiththefundamentalprinciplesofthefree
movementofgoodsandthefreedomtoprovideservicesif,onaccountofitsdurationandthe
181
CaseC-134/03ViacomOutdoorvGiottoImmobilierandOthers[2005].
CaseC-134/03ViacomOutdoorvGiottoImmobilierandOthers[2005].
183
CaseC-169/07Hartlauer[2009].
184
CaseC-438/08CommissionvPortugal[2009].
182
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disproportionatecoststowhichitgivesrise,itissuchastodetertheoperatorsconcerned
frompursuingtheirbusinessplan.Anditisdeemedtobenecessaryonlywheresubsequent
controlmustberegardedasbeingtoolatetobegenuinelyeffectiveandtoenableittoachieve
theaimpursued.185
AmeasureintroducedbyaMemberStatecannotberegardedasnecessarytoachievetheaim
pursuedifitessentiallyduplicatescontrolswhichhavealreadybeencarriedoutinthecontext
ofotherprocedures,eitherinthesameStateorinanotherMemberState.Thusprecluding
theapplicationofanynationalruleswhichhavetheeffectofmakingtheprovisionofservices
between Member States more difficult than the provision of services purely within one
MemberState.186
Ifaprioradministrativeauthorisationschemeistobejustified,eventhoughitderogatesfrom
afundamentalfreedom,itmustbebasedonobjective,non-discriminatorycriteriaknownin
advance,insuchawayasadequatelytocircumscribetheexerciseofthenationalauthorities’
discretion.187
Nationallegislationwhichmakestheprovisionofcertainservicesonthenationalterritory,by
anundertakingestablishedinanotherMemberState,subjecttotheissueofanadministrative
licenceforwhichthepossessionofcertainprofessionalqualificationsisrequired,constitutes
a restriction on the freedom to provide services. The same holds also for trades register
constitutesarestriction.188
Forthesereasons,article5(1)oftheServicesDirectiveaccordinglyprovidesthat:
MemberStatesshallexaminetheprocedureandformalitiesapplicabletoaccesstoaservice
activity and to the exercise thereof. Where procedures and formalities are not sufficiently
simple,MemberStatesshallsimplifythem.
185
CaseC-390/99CanalSateliteDigital[2002].
CaseC-158/96KohllvUniondesCaissesdeMaladie[1998].
187
CaseC-205/99AnalirandOthers[2001];CaseC-169/07Hartlauer[2009].
188
SeeCaseC-76/90SägervDennemeyer[1991];CaseC-58/98Corsten[2000].
186
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Beside simplification, Member States should recognise when the requirements of
authorisationsarefulfilledinanotherState.TherequirementofauthorisationbytheState
where the service is provided is not justified when the undertaking providing the services
alreadysatisfiesequivalentconditionsintheMemberStatewhereitisestablishedandwhere
asystemofco-operationbetweensupervisoryauthoritiesoftheMemberStatesexists,soto
ensureeffectivesupervisionofcompliancewithsuchconditions.189
6.6.3 Pointsofsinglecontactandrighttoinformation.
Onthisline,art.6oftheServicesDirective,imposesthat:
Member States shall ensure that it is possible for providers to complete bureaucratic
proceduresandformalitiesthroughpointsofsinglecontact.
Further,MemberStatesshallensurethatrelevantinformationiseasilyaccessibletoproviders
andrecipientsthroughthepointsofsinglecontact.Andthatinformationisprovidedinaclear
andunambiguousmanner,thatitiseasilyaccessibleatadistanceandbyelectronicmeans
andkeptuptodate(art.7,ServicesDirective).Theprinciplesofequaltreatmentandnondiscrimination on grounds of nationality imply, in particular, a duty of transparency which
enablestheconcession-grantingpublicauthoritytoensurethatthoseprinciplesarecomplied
with.190
189
CaseC-205/84Commissionv.Germany[1986].
CaseC-324/98TelaustriaVerlagsGmbHandTelefonadressGmbHvTelekomAustriaAG,joinedparty:HeroldBusiness
DataAG[2000];CaseC-458/03ParkingBrixen[2005].
190
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6.7
Indistinctlyapplicablemeasuresinhome-sharingandshorttermrentals
6.7.1 France(Paris)
The general rule, in force in most parts of France, prescribes that any person offering a
touristicfurnishedaccommodationforrent,whetherclassifiedornot,mustdeclareittothe
mayorofthemunicipalitywherethepremiseislocated.191
Inspecificgeographicalareas,apriorauthorizationissuedbyCityHallisalsorequiredinorder
torentafurnishedaccommodationhousingthatdeterminesthechangeinclassificationof
thedwellingfrommainresidenceintotouristfurnishedpremise.192Inthislattercase,such
authorization is granted subject to a “compensation”, which requires to convert into
“residential”anareaofcommercialpremises,equivalenttotheonetobeusedasshortterm
rental,allowingthepermanentchangeofdestination.193
Whilethefirstformalitydoesnotimposeaparticularburdenonthosewhowantstochange
the destination of a premise, the same cannot be said in case of authorisation and
compensation.Inthiscaseabureaucraticdutyisimposedandasignificantfinancialburdenis
linkedwiththecompensation.
Thisauthorisationisbasedonobjectivecriteria,easilyknowninadvance,sotocircumscribe
theexerciseofFrenchauthorities’discretion.AndevenifFrenchrulesarestricterthanothers,
theserulesdonotconstitutearestrictionwithinthemeaningoftheECTreatysolelybyvirtue
ofthefactthatotherMemberStatesapplylessstrict,ormorecommerciallyfavourable,rules
toprovidersofsimilarservicesestablishedintheirterritory.
191
Art.L324-1-1,CodeduTourisme.Toutepersonnequioffreàlalocationunmeublédetourisme,quecelui-cisoitclasséou
nonausensduprésentcode,doitenavoirpréalablementfaitladéclarationauprèsdumairedelacommuneoùestsituéle
meublé.
192
Art.L631-7(6)CodedeConstructionetd'Habitation.Laprésentesectionestapplicableauxcommunesdeplusde200000
habitantsetàcellesdesdépartementsdesHauts-de-Seine,delaSeine-Saint-DenisetduVal-de-Marne.Danscescommunes,
le changement d'usage des locaux destinés à l'habitation est, dans les conditions fixées par l'article L. 631-7-1, soumis à
autorisationpréalable.
193
ArticleL631-7-1,CodedeConstructionetd'Habitation.
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However,thesebureaucraticandfinancialburdenshaveadisparateimpactonresidentsand
non-residents(seesupra),andmayconstituteanobstacletothefreemovementofservices.
Sucharule,whichmakestheestablishment/provisionofservicesconditionalupontheissue
ofpriorauthorisation,iscapableofhinderingtheexerciseofthesefreedoms,bypreventing
fromfreelypursuingeconomicactivities,onaccountofthedisproportionatecoststowhichit
givesrise,suchastodetertheprovisionofservicesbynon-residents.
OtherlegalrequirementsareprescribedbyFrenchlawforonlineplatformsoperatinginthe
shorttermrentalssector.UnderFrenchlaw,whenadwellingisrentedviaarealestateagency
oranonlinebookingsite,theagencyortheplatformhasadutytoinformthelessorabouther
legalobligationsand,ifnecessary,abouttheneedofapriorcommunicationorauthorization
forthechangeofuseofthepremise.Andbeforerentingatouristicdwellingtheagencyorthe
platform must obtain a sworn statement attesting that the lessor complied with the
prescribedformalities.
Toute personne qui se livre ou prête son concours contre rémunération, par une activité
d'entremiseoudenégociationouparlamiseàdispositiond'uneplateformenumérique,àla
miseenlocationd'unlogementsoumisàl'articleL.324-1-1duprésentcodeetauxarticlesL.
631-7etsuivantsducodedelaconstructionetdel'habitationinformeleloueurdesobligations
de déclaration ou d'autorisation préalables prévues par ces articles et obtient de lui,
préalablementàlalocationdubien,unedéclarationsurl'honneurattestantdurespectdeces
obligations.
These requirements do not constitute “restriction” under EU law. Sworn statements, prior
declarationsand,moregenerally,obligationsconcerningthecommunicationofinformation,
areallcommonrequirementsacrossEuropeannationallawsasaconditionfortheexerciseof
freedomtoprovideservicesand/orestablishment.EUlawdoesnotprecludetherequirement
ofaswornstatementofcompliance,especiallyifthatomissioncanbesubsequentlyremedied
inanywayincaseofapurelyformalirregularity.194
194
CaseC-42/13Cartieradell’AddaspavCEMAmbientespa[2014];CaseC-161/07CommissionvAustria[2008].
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Accordingly,theobligationsforMemberStatestoexaminetheproceduresandformalities
applicabletoaccesstoaserviceactivityandtotheexercisethereof,andwhereprocedures
and formalities examined are not sufficiently simple, to simplify them (art. 5, Services
Directive),isnotinfringedintheexaminedcase.
Not only the duty for the online platform to inform the provider, and to obtain a sworn
statementofcompliancewiththeirduties,cannotbeseenasanobstacletothefreeprovision
ofservicesand/orestablishment.Quitethecontrary,sucharequirementmayhelptofoster
therighttoinformationanditisconsistentwiththeaimofdefininganewregulatorytoolkit
that delegates governance to platforms, leveraging platforms’ self-governing capacity (see
artt.7and22,ServicesDirective).
6.7.2 Italy(Rome,Milan)
Italyallowsserviceproviderstocompletebureaucraticproceduresandformalitiesthrough
pointsofsinglecontact,inlinewithart.6oftheServicesDirective-the“Sportellounicoper
leattivitàproduttive”(SUAP)or“Sportellounicoperleattivitàricettive”(SUAR).
Apriornotice("Segnalazionecertificatadiinizioattività"-SCIA)issufficienttostartanactivity,
withnoneedofauthorisation.Thisrequiresthepresentationoftheso-calledSCIAtothelocal
CityCouncilcontainingthecommunicationofthebeginningoftheactivity.Theactivitycanbe
startedfromthedaythedeclarationhasbeenissuedtothePublicauthority.IncasethePublic
Authorityascertainthattheactivitydoesnotcomplywithlegalrules,canadoptadifferent
decisionbysixtydaysfromthecommunication.
InItalyshorttermrentalscanbeframedbothastouristrental(pureleases)oras“non-hotel
touristic activity”. While in the former case the civil law applies, in the latter regional
legislation for hospitality and assets classification and authorisation applies, together with
national legislation on tourism. As a result, different layers of legislation are potentially
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applicabletopeer-to-peeraccommodationservices,atnational,regionalandlocallevel,and
a multiplicity of sources regulates the use of premises for tourism: regional legislative
competence concerns only the exercise of touristic activities; regular leases for tourist
purposesaresubjecttonationallaw,accordingtoArt.117,par.2,lett.i),Cost.,thatprovides
thatthestatehasexclusivelegislationincivillaw.Further,notwithstandingwithconstitutional
amendmentsin2001(Legge3/2001),tourismisnowa“residual”subjects,andthelegislative
powerisvestedinRegionswithnoneedofnationallaws,anewspecificlegalframeworkwas
firstsetinplacebynationallawwiththenewnationalCodicedelturismo(CodeofTourism),
thenpartiallydismantledbytheConstitutionalCourt.
Thistwo-tracksregime–touristicleaseandnon-hotelaccommodation–togetherwiththe
differentlayersofnational,regionalandmunicipalrules,createsasomehowconfusedlegal
scenario,thatmayrenderlessattractivetheexerciseofthefreedomofestablishmentandcan
beregardedasapotentialrestrictionofthosefreedoms.Insum,evenifItalianlegislationdoes
not create any “restriction” to the provision of services in short term peer-to-peer rental
sector,alackofclarityinapplicablelegislationmaydiscouragetheprovisionofsuchservices.
6.7.3 UnitedKingdom(London)
After Deregulation Act 2015, which amended the Greater London Powers Act 1973,
homeowners in London are now allowed to let out their property on a short term basis
withoutaplanningpermissionforuptoninetydaysayear.Anexceptionisstilladmissible
under Sec. 25b for particular residential premises or residential premises situated in a
particulararea.Andthelocalplanningauthoritymaygiveadirectiononlywiththeconsentof
theSecretaryofState.195
While permanent short-term use of a residential property should still require planning
permission and property owners will still have to seek this permission from their local
authorityiftheywishtochangetheuseofpremises,theActassumesthattheshort-term
195
DeregulationAct(2015),ExplanatoryNotes,CommentaryonSections44-45,215.
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letting of a property by a resident is reasonable, and no formal requirements are now
necessaryinordertoprovidesuchaserviceforalimitedperiodoftime(ninetydays).196
6.7.4 UnitedKingdom(outsideLondon)
WhilerulesapplicableinGreaterLondonhavebeenchangedin2015withDeregulationAct,
theoldrulesarestillinforceintherestofthecountry,meaningthatlocalplanningauthorities
mustpondereachcaseinordertoverifywhethertheuseofaspecificresidentialpremisesas
temporarysleepingaccommodationdoesnotamounttoamaterialchangeinuse.
As already observed, under the old rules one of the elements to be taken into account is
whetherthepropertyownersliveinthepropertywhilstthepropertyisrentedonashorttermbasis(i.e.providedthatahouseisprimarilyusedasahomefirst,andshort-termletting
accommodationasasecondaryuse).197So,makingresidenceanelementpotentiallyrelevant
fordeterminingapplicableproceduresinviolationofEUlaw.
Inaddition,duetheabsenceofdefinitecriteria,considerablediscretionisgiventoauthorities,
intensionwithEUprinciples.AccordingtoEUcaselaw,ifapriorauthorisationisneeded,it
mustbebasedonobjective,non-discriminatorycriteriaknowninadvance,insuchawayas
adequatelytocircumscribetheexerciseofthenationalauthorities’discretion.198
AdifferentconclusioncanbereachedwithregardtotheEnterpriseandRegulatoryReform
Act2013,whichintroducednewrulesapplicabletoalllettingandmanagingagentsinEngland,
requiringlettingagenciestobelongtoanapprovedredressscheme-aschemewhichprovides
for complaints against members of the scheme to be investigated and determined by an
independentperson.199
196
Art.44,DeregulationAct(2015),Short-termuseofLondonaccommodation:relaxationofrestrictions.“Despitesection
25(1),theuseastemporarysleepingaccommodationofanyresidentialpremisesinGreaterLondondoesnotinvolveamaterial
changeofuse”.
197
DepartmentforCommunitiesandLocalGovernment,ReviewofPropertyConditionsinthePrivateRentedSector,February
2014,48-50.
198
CaseC-205/99AnalirandOthers[2001];CaseC-169/07Hartlauer[2009].
199
Art.83,sec.2-3.
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Leavingasidetheinterpretiveissueontheactiveorpassiveroleroleofpeer-to-peerplatforms
andtheconnectedquestionsrelatedtothedefinitionsof“lettingagencywork”200,inthiscase
nopotentialrestrictiontotheprovisionofservicesand/orestablishmentcanbefoundasa
consequenceoftheaforementionedrules(seesupra).
Quitethecontrary,theadhesiontotheredressschemeisconsistentwithart.17,Services
Directive,on“Out-of-courtdisputesettlement”:
1. Member States shall ensure that, in the event of disagreement between an information
societyserviceproviderandtherecipientoftheservice,theirlegislationdoesnothamperthe
useofout-of-courtschemes,availableundernationallaw,fordisputesettlement,including
appropriateelectronicmeans.
2. Member States shall encourage bodies responsible for the out-of-court settlement of, in
particular, consumer disputes to operate in a way which provides adequate procedural
guaranteesforthepartiesconcerned.
3.MemberStatesshallencouragebodiesresponsibleforout-of-courtdisputesettlementto
inform the Commission of the significant decisions they take regarding information society
servicesandtotransmitanyotherinformationonthepractices,usagesorcustomsrelatingto
electroniccommerce.
Insum,theprovisionoftheEnterpriseandRegulatoryReformAct2013ontheadoptionofa
redress scheme for letting agency work clearly goes in the direction of defining a new
200
Art.83,sec.7-8,ofEnterpriseandRegulatoryReformAct2013,providesthat:7.Inthissectionlettingsagencywork”
meansthingsdonebyanypersoninthecourseofabusinessinresponsetoinstructionsreceivedfrom:(a)apersonseeking
to find another person wishing to rent a dwelling-house in England under a domestic tenancy and, having found such a
person,tograntsuchatenancy(“aprospectivelandlord”);(b)apersonseekingtofindadwelling-houseinEnglandtorent
underadomestictenancyand,havingfoundsuchadwelling-house,toobtainsuchatenancyofit(“aprospectivetenant”).
8.However“lettingsagencywork”doesnotincludeanyofthefollowingthingswhendonebyapersonwhodoesnoother
things falling within subsection (7) (a) publishing advertisements or disseminating information; (b) providing a means by
which(i)aprospectivelandlordoraprospectivetenantcan,inresponsetoanadvertisementordisseminationofinformation,
makedirectcontactwithaprospectivetenantor(asthecasemaybe)prospectivelandlord;(ii)aprospectivelandlordanda
prospectivetenantcancontinuetocommunicatedirectlywitheachother.
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regulatory toolkit that delegates governance to platforms, leveraging platforms’ selfgoverningcapacityatbothlevels-definitionofrulesandenforcement/disputeresolution.
6.8
TaskII–Legalassessmentoftheidentifiedmeasures
Second,foreachrestriction,pleaseidentifythepossibleoverridingreasonsofpublicinterest
thataccordingtothecompetentnationalauthoritycouldjustifysuchrestriction.Inorderto
identifythejustificationswhichnationalauthoritiesmayallegetojustifysuchrequirements,
please check the recitals of the legislation, impact assessments of the relevant legislation,
studiescarriedoutorpaperswrittenonthispieceoflegislation,publicdeclarations,etc.
6.9
Conditionsforjustifiedrestrictions
Arestrictiononservicesispermittedifitisequallyapplicabletothenationalandtheforeign;
justified by some legitimate public interest objective; and proportionate to that objective.
Appropriateness, necessity, indispensability, and proportionality of the measure, together
withthepriorityforlessrestrictivemeasures,aretheelementstobeponderedinorderto
evaluatewhetheranationaldecisionamountstoajustifiedrestriction.
Thefreedomtoprovideservices,beingoneofthefundamentalprinciplesoftheTreaty,may
berestrictedonlybyrulesjustifiedbyoverridingrequirementsrelatingtothepublicinterest
andapplicabletoallpersonsandundertakingsoperatingintheterritoryoftheMemberState
wheretheserviceisprovided.
Such restrictions come within the scope of Article 59 if the application of the national
legislationtoforeignpersonsprovidingservicesisnotjustifiedbyoverridingreasonsrelating
to the general interest or if the requirements embodied in that legislation are already
safeguardedbytherulestowhichtheproviderofsuchaserviceissubjectintheMSwherehe
isestablished.201
201
CaseC-288/89GoudavCommissariatvoordeMedia[1991];CaseC-58/98CorstenCaseC-58/98[2000];Case355/98
Commissionv.Belgium[2000].
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The measure in question must be appropriate for ensuring attainment of the objective
pursuedanddoesnotgobeyondwhatisnecessaryforthatpurpose.202Alinkmustbeproved
bytheMemberStatebetweenthenationalmeasureandtheinvokedjustification.203
Asaderogationfromthefundamentalruleoffreedomofestablishment,arestrictionmustbe
interpretedinamannerwhichlimitsitsscopetowhatisstrictlynecessaryforsafeguarding
theinterestswhichthatprovisionallowstheMemberStatestoprotect.204Arestrictionon
freedomofestablishmentisprohibitedbyArticle43EC,evenifitisoflimitedscopeorminor
importance.205
6.9.1 Treatyexceptions
Restrictionsthatarenotequallyapplicable,butdiscriminatesonitsface,mayonlybesaved
by reliance on one of the Treaty exceptions.206 The free movement of services may be
restrictedongroundsofpublicpolicy,publicsecurityorpublichealth.207Discriminatoryrules
justified on grounds of public policy, public security or public health must be interpreted
strictly.208 Recourse to these justifications presupposes the existence of a genuine and
sufficientlyseriousthreataffectingoneofthefundamentalinterestsofsociety.209So,public
policyandpublicsecuritymaynotbeinvokedunlessthereisarealandpresentthreattoa
fundamentalinterestofsociety.210
202
CaseC-140/03CommissionvGreece[2005].
CaseC-243/01Gambelli[2003].
204
Case147/86CommissionvGreece[1988];CaseC-114/97CommissionvSpain[1998].
205
Case270/83CommissionvFrance;CaseC-34/98CommissionvFrance[2000];CaseC-9/02DeLasteyrieduSaillant[2004].
206
CaseC-288/89GoudavCommissariatvoordeMedia[1991].
207
Theprotectionofpublichealthisoneoftheoverridingreasonsinthegeneralinterestwhichcanjustifyrestrictionsonthe
freedoms of movement guaranteed by the Treaty such as the freedom of establishment. See, inter alia, Case C-169/07
Hartlauer[2009];JoinedCasesC-171/07andC-172/07ApothekerkammerdesSaarlandesHartlauer[2009].
208
Case C-260/89 Elliniki Radiophonia Tiléorassi AE and Panellinia Omospondia Syllogon Prossopikou v Dimotiki Etairia
PliroforissisandSotiriosKouvelasandNicolaosAvdellasandothers[1991].
209
CaseC-114/97CommissionvSpain[1998].
210
CaseC-355/98CommissionvBelgium[2000];CaseC-54/99Eglisedescientologie[2000].
203
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Inkeepingwiththeirdomesticneeds,MemberStatesremainfreetofixtherequirementsof
publicpolicyandpublicsecurity,asgroundsforderogatingfromafundamentalfreedom,but
thoserequirementsmustbeinterpretedstrictly,sothattheirscopecannotbedetermined
unilaterallywithoutanycontrolbytheinstitutionsoftheEuropeanCommunity.
6.9.2 Case-lawexceptions
Anationalmeasurewhich,eventhoughitisapplicablewithoutdiscriminationongroundsof
nationality,isliabletohinderorrenderlessattractivetheexercisebyCommunitynationalsof
fundamentalfreedomsguaranteedbytheTreatymaybejustifiedbyoverridingreasonsof
general interest. According to Gerhard, “national measures liable to hinder or make less
attractive the exercise of fundamental freedoms guaranteed by the Treaty must fulfil four
conditions:theymustbeappliedinanon-discriminatorymanner;theymustbejustifiedby
imperative requirements in the general interest; they must be suitable for securing the
attainment of the objective which they pursue; and they must not go beyond what is
necessaryinordertoattainit”.211
Forequallyapplicablemeasures,justificationswhichmaybeputforwardarediverse,andthe
listisnotclosed.Theoverridingreasonsrelatingtothepublicinterestarethoserecognised
bytheECJinitscase-law.Inadditionto,notablypublicpolicy,publicsecurity,publichealth,
reasons already recognised by the Court include the objectives of road safety212,
environmental protection213 and consumer protection.214 Other admissible justification for
the existence of an overriding reason of general interest, recognised by the ECJ, concern:
protectionofworkers,creditorsandrecipientsofservices;healthofanimals,conservationof
the national historic and artistic heritage, social policy objectives, cultural policy; efficient
211
CaseC-55/94GebhardvConsigliodell’ordinedegliavvocatieprocuratoridiMilano[1995].
CaseC-55/93vanSchaik[1994];CaseC-54/05CommissionvFinland[2007].
213
Case302/86CommissionvDenmark[1988];CaseC-309/02RadlbergerGetränkegesellschaftandS.Spitz[2004].
214
ConsumerprotectionisoneofthemostinvokedpublicinterestrecognizedbytheECJ.SeeCase220/83Commissionv
France [1986]; Case C-393/05 Commission v Austria [2007]; Case C-348/08 Attanasio [2010]; Case 252/83 Commission v.
Denmark[1986];Commissionv.Germany[1986];Case206/84Commissionv.Ireland[1986];CaseC-180/89Commissionv.
Italy[1991].
212
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administration of justice; cohesion of the tax system; professional ethics; intellectual
property;culturalpolicy,diversityofopinion;languagerequirements.
6.9.3 Housingshortage,socialdiversity,developmentofurbanenvironmentaslegitimate
publicinterestobjectives
JustificationsforrestrictionsunderEUlawmaylegitimatelybebasedontheneedtoprotect
cityenvironment,housingshortageandsocialdiversity,accordingtobothlegaltextsandcase
law. And the exercise by national public bodies of regulatory urban-planning powers, with
regardstolimitationofshorttermrentalactivities,canbejustifiedforreasonsconnectedwith
theprotectionofurbanenvironment.
Art. 4, Services Directive, includes both “the protection of environment and the urban
environment”, and “social policy objectives and cultural policy objectives”, within the
definitionofwhatconstitutes“overridingreasonrelatingtopublicinterest”.215
Following the well-established case-law of the Court of Justice, the impact of a given rule
onenvironmentalprotection216andtownandcountryplanning217arelegitimatecriteriathat
apublicbodycanadopttoregulatetheprovisionofservices.218Further,theaimofensuring
anadequatesupplyofhousingmayconstitutesanoverridingreasoninthepublicinterest.219
MemberStatescannotbedeniedthepossibilityofpursuingobjectives,suchasenvironmental
215
Art.4,par.8,ServicesDirective:“‘overridingreasonsrelatingtothepublicinterest’meansreasonsrecognisedassuchin
thecaselawoftheCourtofJustice,includingthefollowinggrounds:publicpolicy;publicsecurity;publicsafety;publichealth;
preservingthefinancialequilibriumofthesocialsecuritysystem;theprotectionofconsumers,recipientsofservicesand
workers;fairnessoftradetransactions;combatingfraud;theprotectionoftheenvironmentandtheurbanenvironment;the
healthofanimals;intellectualproperty;theconservationofthenationalhistoricandartisticheritage;socialpolicyobjectives
andculturalpolicyobjectives”.
216
See,interalia,CaseC‑384/08AttanasioGroup[2010].SeeCaseC‑260/04CommissionvItaly[2007].Ontheotherhand,
purelyeconomicobjectivescannotconstituteanoverridingreasoninthepublicinterest:see,tothateffect,CaseC‑96/08
CIBA[2010].
217
See,byanalogy,CaseC‑567/07WoningstichtingSintServatius[2009].
218
SeeCaseC‑400/08CommissionvSpain[2011].
219
See Case C-269/07 Commission v Germany [2009]. For examples, national measures can be justified by the aim of
encouraging the building of dwellings in its territory, in order to ensure an adequate supply of housing. Case C-152/05
CommissionvGermany[2008].
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protection,townandcountryplanningandconsumerprotection,throughtheintroductionof
ruleswhichareeasilymanagedandsupervisedbythecompetentauthorities.220
AparticularattentionisdevotedbyEuropeanlawtosocialhousing.221TheEuropeanCourtof
Justicerecognisesthattheneedtoprovidesufficienthousingforthelow‑incomeorotherwise
disadvantagedsectionsofthelocalpopulationcanamounttoalegitimateinterestthatcan
justify the restriction of freedom in the provision of services and/or establishment. The
purposeofrespondingtothehousingneedsofthelessaffluentlocalpopulation,inparticular
sociallyweakindividuals,isdeemedasvitalbytheCourt.222
Inaddition,accordingtothewell-establishedcase-lawoftheCourt,nationalauthoritiesmay
alsocontributetoensuringtheimplementationofpoliciesaimedatthepromotionofcultural
policiespromotingdiversitymayconstituteanoverridingrequirementrelatingtothegeneral
interest,whichjustifiesarestrictionofthefreedomtoprovideservices.223
Itisunderstoodthatthelessrestrictivemethodistobeadopted,amongthoseonesthatcan
beembracedtopursuetheseaims,inordertoachieveobjectivessuchastheprotectionof
theurbanenvironment.224
6.10 Conditionsforjustifiedrestrictionsinhome-sharingandshorttermrentals
6.10.1 France(Paris)
In France, any person offering a touristic furnished accommodation for rent, whether
classified or not, must declare it to the mayor of the municipality where the premise is
220
CaseC‑400/08CommissionvSpain[2011];seealso,byanalogy,CaseC‑137/09Josemans[2010].SeealsoCaseC‑237/99
CommissionvFrance[2001],concerninglow‑renthousingbodies.
221
SeeJoinedCasesC‑197/11andC‑203/11Libertv.Gouvernementflamand[2013].
222
SeeCaseC-567/07MinistervoorWonen,WijkenenIntegratievWoningstichtingSintServatius[2009];CaseC‑400/08
CommissionvSpain[2011].
223
CaseC-16/10TheNumber(UK)andConduitEnterprise[2011];C-281/06JundtvFinanzamtOffenburg[2007].Seealso,to
thateffect,C-134/10CommissionvBelgium[2011];CaseC-250/06UnitedPan-EuropeCommunicationsv.Belgium[2007].
224
CaseC-17/00DeCoster[2001].
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located.225And,inspecificgeographicalareas,apriorauthorizationissuedbyCityHallisalso
required,whichisusuallygrantedsubjecttoa“compensation”thatconsistsintheconvertion
into“residential”ofanareaofcommercialpremises,equivalenttotheonetobeusedasshort
termrental.226Inbothcases,anexceptionappliesto“résidenceprincipale”,thatcanberented
outupto120daysperyearwithnoformalities.227
Therationalefortheserulesisrelatedtothepermanentchangeofdestination,frommain
residenceintotouristfurnishedpremise,derivingfromrentingafurnishedaccommodation
housingonapermanentbasis.228TheobjectiveofFrenchregulationonthechangeofuseof
residentialpremise,andespeciallyofthesystembasedoncompensation,isnottoworsenthe
shortageofhousingincitieslikeParis,andalsototakeintoaccountsocialdiversity,aswellas
tobalancehousingandemploymentindifferentneighborhoodsofParis,inaccordancewith
localhousingprogramandthelocaldevelopmentplaninforceinParis.229
Housingshortage,socialdiversityandlocalhousingprogramsareallvalidjustificationsfor
restrictingtheprovisionofservicesbasedonlegitimatepublicinterestobjective,thusallowing
arestrictiononservices(seesupra).However,suchrestrictionsshouldbeequallyapplicable
toresidentsandnon-residents.Contrariwise,restrictionsthatarenotequallyapplicable,but
discriminatesonitsface–suchthoseappliedonthebasisof“résidenceprincipale”-mayonly
besavedbyrelianceononeoftheTreatyexceptions.230Arestrictionofthefreemovementof
services based on criteria that have a disparate impact on residents and non-residents
presupposestheexistenceofagenuineandsufficientlyseriousthreataffectingoneofthe
225
Art.L324-1-1,CodeduTourisme.Toutepersonnequioffreàlalocationunmeublédetourisme,quecelui-cisoitclasséou
nonausensduprésentcode,doitenavoirpréalablementfaitladéclarationauprèsdumairedelacommuneoùestsituéle
meublé.
226
Art.L631-7(6)CodedeConstructionetd'Habitation.Laprésentesectionestapplicableauxcommunesdeplusde200000
habitantsetàcellesdesdépartementsdesHauts-de-Seine,delaSeine-Saint-DenisetduVal-de-Marne.Danscescommunes,
le changement d'usage des locaux destinés à l'habitation est, dans les conditions fixées par l'article L. 631-7-1, soumis à
autorisationpréalable.
227
Art.2,Loin°89-462du6juillet1989tendantàaméliorerlesrapportslocatifsetportantmodificationdelaloin°86-1290
du23décembre1986,ModifiéparLOIn°2014-366du24mars2014-art.1.Art.L324-1-1CodeduTourisme.
228
UnderFrenchlaw,rentingafurnishedlodgingrepeatedlyforshortperiodstotransientguests,whodonotelecttheir
domicileinthelodging,isdeemedasachangeinuse.Art.L631-7,Codedelaconstructionetdel'habitation.
229
http://www.paris.fr/services-et-infos-pratiques/urbanisme-et-architecture/demandes-d-autorisations/exercer-uneactivite-dans-un-logement-172#autorisation-3-le-changement-d-usage-a-caractere-reel-avec-compensation_5.
230
CaseC-288/89GoudavCommissariatvoordeMedia[1991].
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fundamentalinterestsofsociety231,notablypublicpolicy,publicsecurityorpublichealth.232
Andtheseexceptionsmustbeinterpretedstrictly.233Thus,Frenchrulesthatallow“résidence
principale” to be rented out for up to four months may be seen as a discrimination, in
considerationofthedisparateimpactithasonnon-residents,whofaceacomplexand,incase
ofcompensation,expensiveproceduretoprovidethesameservice.
6.10.2 Italy(Roma,Milano)
Italianlegislationdoesnotcreateany“restriction”totheprovisionofservicesinshortterm
peer-to-peerrentalsector.Thus,nospecialjustificationisbrought.
Nonethelessalackofclarityinapplicablelegislationmaydiscouragetheexerciseoffreedom.
Thedescribedtwo-tracksregime–touristicleaseandnon-hotelaccommodation–together
withthedifferentlayersofnational,regionalandmunicipalrules,createalegalframework
that may render less attractive the exercise of the freedom of establishment and can be
regardedasapotentialrestrictionofthosefreedoms.Inaccordancewitharticle5(1)ofthe
ServicesDirective,Italymaysimplifytheprocedureandformalitiesapplicabletoaccesstoa
serviceactivityandtotheexercise.
6.10.3 UnitedKingdom(London)
WiththeDeregulationAct2015itisnowallowedtoletoutapropertyinLondonforupto
ninetydaysayear,withoutaplanningpermission.Norestrictionisnowapplicabletoshort
termrentalsinLondonforninetydaysorless.
Anexceptiontonewrulesisstilladmissibleforparticularresidentialpremisesorresidential
premisessituatedinspecificareas.234Thejustificationbroughtreliesontheconcernforissues
arisingfromfrequencyoftenantturnover,theriskoflosingexistingfamilyhousingfromthe
231
Bouchereau;CaseC-114/97CommissionvSpain[1998].
Theprotectionofpublichealthisoneoftheoverridingreasonsinthegeneralinterestwhichcanjustifyrestrictionsonthe
freedomsofmovementguaranteedbytheTreatysuchasthefreedomofestablishment(see,interalia,Hartlauer;Joined
CasesC-171/07andC-172/07ApothekerkammerdesSaarlandesHartlauer[2009].
233
Case C-260/89 Elliniki Radiophonia Tiléorassi AE and Panellinia Omospondia Syllogon Prossopikou v Dimotiki Etairia
PliroforissisandSotiriosKouvelasandNicolaosAvdellasandothers[1991].
234
DeregulationAct(2015),ExplanatoryNotes,CommentaryonSections44-45,215.
232
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mainstreammarket,andlossofamenity;fearofcrime,noiseanddisturbance,fireriskand
hygiene; short-term use undermining the current policy to increase and improve the longtermprivaterentedsector;discouragingdownsizingandfreeingupoflargerhomes;andthe
needtoensureconsistentregulationofthehotelsectorandshort-termuse.235
6.10.4 UnitedKingdom(outsideLondon)
Intherestofthecountry,localplanningauthoritiesmustpondereachcaseinordertoverify
whethertheuseastemporarysleepingaccommodationofaresidentialpremisesamountto
amaterialchangeinuse236,takingintoaccountallrelevantelements,amongotherswhether
thepropertyownersliveinthepropertywhilstitisusedasashorttermlet(i.e.providedthat
a house is primarily used as a home first, and short-term letting accommodation as a
secondaryuse).
The above mentioned justifications for restricting the provision of services may be
contemplatedaslegitimatepublicinterestobjectives,thusallowingarestrictiononservices
equallyapplicabletothenationalandtheforeign.Contrariwise,noneofthesereasonscanbe
abasisforrestrictionsthatdiscriminateonitsface237forwhicharestrictioncanbepermissible
only if a genuine and sufficiently serious threat occurs, affecting one of the fundamental
interestsofsociety238-publicpolicy,publicsecurityorpublichealth.239Andsuchanexception
is subject to strict scrutiny.240 For these reasons, in pondering the exceptions to the
DeregulationAct2015andthoseapplicableoutsideLondon,noweightshouldbegivento
residence.
235
DepartmentforCommunitiesandLocalGovernment,PromotingthesharingeconomyinLondon.Policyonshort-termuse
ofresidentialpropertyinLondon,February2015,17.
236
DepartmentforCommunitiesandLocalGovernment,ReviewofPropertyConditionsinthePrivateRentedSector,February
2014,48-50.
237
CaseC-288/89GoudavCommissariatvoordeMedia[1991].
238
CaseC-114/97CommissionvSpain[1998].
239
Theprotectionofpublichealthisoneoftheoverridingreasonsinthegeneralinterestwhichcanjustifyrestrictionsonthe
freedomsofmovementguaranteedbytheTreatysuchasthefreedomofestablishment(see,interalia,JoinedCasesC-171/07
andC-172/07ApothekerkammerdesSaarlandesHartlauer[2009]).
240
Case C-260/89 Elliniki Radiophonia Tiléorassi AE and Panellinia Omospondia Syllogon Prossopikou v Dimotiki Etairia
PliroforissisandSotiriosKouvelasandNicolaosAvdellasandothers[1991].
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6.11 TaskII.Legalassessmentoftheidentifiedmeasures
Third,provideadetailedlegalassessmentastowhethertheidentifiedrestrictionisjustifiedin
viewoftheprinciplesofproportionalityandnecessity,takingintoaccounttheexistingcaselawoftheEUCJ,foreachoverridingreasonofpublicinterest.Pleaseelaborateinparticularon
which other less restrictive means may be used to achieve or protect the same overriding
reasons of general interest, if considered that those are justified. This legal proportionality
assessmentconstitutesaveryimportantdeliverableofthepaper.
6.12 Proportionalityandnecessity
National measures liable to hinder or make less attractive the exercise of fundamental
freedomsguaranteedbytheTreatymustfulfilfourconditions:theymustbeappliedinanondiscriminatory manner; they must be justified by imperative requirements in the general
interest;theymustbesuitableforsecuringtheattainmentoftheobjectivewhichtheypursue;
andtheymustnotgobeyondwhatisnecessaryinordertoattainit.241Irrespectiveofthe
existenceofalegitimateobjectiveunderEUlaw,arestrictiononthefundamentalfreedoms
enshrinedintheTreatymaybejustifiedonlyiftherelevantmeasureisappropriatetoensuring
theattainmentoftheobjective.
ItisfortheMemberStatestodecideonthelevelatwhichtheyintendtoensuretheprotection
oftheobjectivesandofthegeneralinterestandalsoonthewayinwhichthatlevelmustbe
attained.However,theycandosoonlywithinthelimitssetbytheTreatyand,inparticular,
theymustobservetheprincipleofproportionality.
InordertoestablishwhetheraprovisionofCommunitylawcomplieswiththeprincipleof
proportionality,itmustbeascertainedwhetherthemeanswhichitemploysaresuitablefor
241
CaseC-19/92KrausvLandBaden-Wuerttemberg[1993];CaseC-55/94GebhardvConsigliodell’ordinedegliavvocatie
procuratoridiMilano[1995].
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thepurposeofachievingthedesiredobjectivesandwhethertheydonotgobeyondwhatis
necessarytoachieveit.242
First,itmustberecalledthatnationallegislationisappropriateforensuringattainmentofthe
objectivepursuedonlyifitgenuinelyreflectsaconcerntoattainthatobjectiveinaconsistent
andsystematicmanner.243NotonlythereasonswhichmaybeinvokedbyaMemberState,in
order to justify a derogation from the principle of freedom of establishment, must be
accompanied by an analysis of the appropriateness and proportionality of the restrictive
measureadoptedbythatMemberState,butitalsomustbesupportedbypreciseevidence
enablingitsargumentstobesubstantiated.244
ExaminingthecaselawoftheEUCJ,thescrutinyunderwhichsteps,takenbymemberStates
to protect a given interest, are evaluated varies considerably. The general principle is that
Statesshouldnotgobeyondwhatisnecessarytoattaintheinterestatstake.Butthewaythis
principleisappliedincaselawdependsonthe(political,cultural)sensitivityofthesubject
matter.LeavingtotheMemberStatetodecidewithamarginofappreciationinmoresensitive
fields.245
6.13 Proportionalityandnecessityinhomesharingandshorttermrentals
6.13.1 France(Paris)
InFrance,anyaccommodationrepeatedlyofferedforshortrentrentsdeterminesthechange
in classification of the dwelling from residence into furnished premise. For this reason the
personwhorentoutthepremisemustdeclareittothemayorofthemunicipalitywherethe
242
CaseC-106/91RamrathvMinistredelaJustice[1992];CaseC-19/92Kraus[1993];CaseC-84/94UnitedKingdomvCouncil
[1996];CaseC-233/94GermanyvParliamentandCouncil[1997];JoinedCasesC-171/07andC-172/07Apothekerkammer
desSaarlandesHartlauer[2009];JoinedCasesC-570/07andC-571/07BlancoPerez[2010];CaseC-100/01OteizaOlazabal
[2002];CaseC-527/06Renneberg[2008];JoinedCasesC-155/08andC-157/08XandPassenheim-vanSchoot[2009];CaseC169/08PresidentedelConsigliodeiMinistri[2009];CaseC-299/02CommissionvNetherlands[2004].
243
JoinedCasesC-338/04,C-359/04andC-360/04PlacanicaandOthers[2007];CaseC-500/06CorporaciónDermoestética
[2008];CaseC-531/06CommissionvItaly[2009].
244
CaseC-161/07CommissionvAustria[2008].
245
SeeD.Chalmers,G.Davies,G.Monti,EuropeanUnionLaw,2nded.,Cambirdge,2010,892.
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premise is located246 and, in specific geographical areas (among them, Paris), a prior
authorization subject to a “compensation” is required, allowing the permanent change of
destination.247Noneoftheseformalitiesappliesto“résidenceprincipale”.248
The distinction between “résidence principale” and “résidence sécondaire” is of utmost
importance,sinceanexceptiontoprescribedrulesappliesincaseof“résidenceprincipale”
with regard to communications, authorisations and compensations.249 Besides, in order to
better define how this distinction may constitute a restriction in the provision of services
under EU law, and to verify whether an unlawful discrimination occures, the concept of
residencymustalsobetakenintoaccount.
ThedeterminationofresidencystatusinFranceisgovernedbyageneralruleprovidingthat
thosewhospendatleast183dayspercalendaryearinFrancearedeemedtoberesident.
Alternatively,apersonwouldalsobedeemedtoberesidentifanyoneoftheseconditions
apply:havingthemainhomeinFrance;carryingonaprofessionalactivityinFrance(either
self-employed or as an employee); having the centre of economic interests in France (see
supra).
Combiningtheserules,itisapparentthattheexemptionforthe“résidenceprincipale”havea
disparateimpactonresidentsandnon-residents:itmaybenefitonlyresidents(i.e.thosewho
havebeenlivinginFranceforatleast183ayear)sincethefactitselfoflivinginadwellingfor
atleasteightmonthsayearmaketheoccupieraFrenchresident.
246
Art.L324-1-1,CodeduTourisme.Toutepersonnequioffreàlalocationunmeublédetourisme,quecelui-cisoitclasséou
nonausensduprésentcode,doitenavoirpréalablementfaitladéclarationauprèsdumairedelacommuneoùestsituéle
meublé.
247
Art.L631-7(6)CodedeConstructionetd'Habitation.Laprésentesectionestapplicableauxcommunesdeplusde200000
habitantsetàcellesdesdépartementsdesHauts-de-Seine,delaSeine-Saint-DenisetduVal-de-Marne.Danscescommunes,
le changement d'usage des locaux destinés à l'habitation est, dans les conditions fixées par l'article L. 631-7-1, soumis à
autorisationpréalable.
248
SeeArt.L324-1-1,CodeduTourisme;Art.L631-7-1,Codedelaconstructionetdel'habitation.
249
Under French law, the main residence is any dwelling occupied for at least eight months a year, unless there are
professional obligations, health or force majeure, occur either to the lessee, her partner or dependent family member.
Following this rule, in order to be regarded as “résidence principale” the accommodation cannot remain unoccupied by
residentsformorethan120daysperyear.Therefore,anaccommodationthatisrentedmorethan120daysinasolaryearis
regardedasa“résidencesécondaire”.
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Onthecontrary,notallresidentsbenefitfromtheseexemptions.Adwellingthatthelandlord
doesnotoccupyforatleasteightmonthsayearisdeemedas“résidencesecondaire”evenif
theownerisaFrenchresident,andissubjecttotheabovedescribedformalities.
This different impact on residents and non-residents may create an obstacle to the free
provision of services, capable of hindering the exercise of this freedom and to deter the
provisionofservicesbyforeigners,preventingthemfromfreelypursuingtheiractivitieson
account of its disproportionate costs to which these rules give rise. And this conclusion is
especiallytrueincasesofauthorisationwithcompensation.
Insum,whiletheformalitiesforrentingoutadwellingthatisnot“résidenceprincipale”are
applicabletobothresidentsandnon-residents,theapplicationofthemoreconvenientrules
for“résidenceprincipale”mayonlysupportresidents,sincethemorefavourablerulesapply
onlytopremisesoccupiedbythelandlordforatleasteightmonthsayear–aconditionthat
onlyresidentsmayfulfil.
Followingofficialstatements(seesupra),thisregulationonthechangeofuseofresidential
premiseintendstotoaddresstheneednottoaggravatetheshortageofhousingincitieslike
Paris,totakeintoaccountsocialdiversityandtobalancehousingandemploymentindifferent
neighborhoodsofParis,inaccordancewithlocalhousingprogramandthelocaldevelopment
planinforceinParis.250
Admittedly, all these reasons may be seen as justifications for restricting the provision of
services based on legitimate public interest objective, thus allowing such restrictions.
However,thisconclusionholdssolongastherestrictionisequallyapplicabletonationalsand
foreigners;butdoesnotworkfordiscriminationsbasedon“résidenceprincipale”.
250
http://www.paris.fr/services-et-infos-pratiques/urbanisme-et-architecture/demandes-d-autorisations/exercer-uneactivite-dans-un-logement-172#autorisation-3-le-changement-d-usage-a-caractere-reel-avec-compensation_5.
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Differenttechniquescanbeadoptedtoattainthesameresult,withoutproducingdisparate
impactonthebaseofresidence.Iftheneednottoaggravatetheshortageofhousing,tofoster
socialdiversityandtobalancehousingandemploymentindifferentneighborhoodsarethe
mainconcerns,theseobjectivescanbeaddressedinmanyways,withthesameimpacton
French and non-French service providers. Among them, the introduction of a maximum
numberofdaysperyearthatapremisecanberentedoutonshorttermbasiswithneither
authorizationnorcompensationneeded,asitisnowfor“résidenceprincipale”.Thisresultcan
bereachedbysimplyregarding“résidenceprincipale”asthesameas“résidencesecondaire”,
thus limiting up to four months the maximum number of days for the exemption from
formalities(communication/authorization/compensation).
Admittedly,evenunderthisequallyapplicablerulemorepremisescouldberentedout,since
notallthedwellingare“résidenceprincipale”.But,inordertopreserveneighborhoodsfrom
housingshortage,amaximumnumberofdaysfortheexemption,lowerthanthe120days
limit currently applicable to “résidence principale”, could be devised. This different limit
should be applied to all service providers with no distinction between residents and nonresidents.
6.13.2 Italy(Roma,Milan)
WhileItalianlawdoesnotcreateany“restriction”totheprovisionofservicesinshortterm
peer-to-peer rental sector, nonetheless a lack of clarity in legislation may discourage the
exerciseoffreedomtoprovideshorttermrentalservices:thedescribedtwo-tracksregimefor
touristicleaseandnon-hotelaccommodation,togetherwiththedifferentlayersofrulesmay
renderlessattractivetheexerciseofeconomicactivitiesandcanberegardedasapotential
restriction of those freedoms. For this reason Italy should simplify the procedure and
formalitiesapplicabletoaccesstoaserviceactivityandtotheexercise.
Abrightlinebetweentouristicleaseandnon-hotelaccommodationshouldbetraced,based
on the provision of additional services and/or on the duration of rent. In making such a
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distinctionitisimportanttomakesurethatsimilaractivitiesarenotsubjecttodiverserules,
leadingtobothuncertaintyandunfaircompetition.Asageneralrule,itcanbesaidthatthe
simplerentofapremisewithnofacilitycanbedeemedastouristicrent,subjecttoItaliancivil
code, and short term rental service that include the provision of additional services (linen
change, laundry, breakfast) is deemed as non-hotel accommodation, subject to Code of
tourismandregionallaws.
6.13.3 UnitedKingdom(London)
ProportionalityinbothregulationandenforcementarethefocusofUKpoliciesinthenascent
collaborative economy. With specific reference to the accommodation sector, the
Government recommends that Regulations for those providing accommodation should be
proportionatetothescaleofoperation(i.e.someonerentingoutaspareroomafewnightsa
yearshouldnotbesubjecttothesamelevelofregulationasabusinessrentingout100rooms
year-round).251
Despite a clear dividing line applies in Greater London, as the new rules provide that a
temporarysleepingaccommodationforuptoninetydaysayeardoesnotconstituteachange
in the use, and does not require a planning permission, exceptions are still admissible for
particular residential premises or residential premises situated in specific areas. This
exceptionsmustbegroundedonconcernsforthefrequencyoftenantturnover,theriskof
losingexistingfamilyhousingfromthemainstreammarket,andlossofamenity;fearofcrime,
noise and disturbance, fire risk and hygiene; the risk to undermine the current policy to
increase and improve the long-term private rented sector and the need for consistent
regulationofthehotelsectorandshort-termuse.252Similarly,acase-to-caseanalysismustbe
broughtintherestofthecountry,inordertoverifywhethertheuseofaresidentialpremise
astemporarysleepingaccommodationamountstoamaterialchangeinuse.253
251
DepartmentforBusiness,innovationandSkills,Independentreviewinthesharingeconomy.Governmentresponse,March
2015,Chapter2.
252
DepartmentforCommunitiesandLocalGovernment,PromotingthesharingeconomyinLondon.Policyonshort-termuse
ofresidentialpropertyinLondon,February2015,17.
253
DepartmentforCommunitiesandLocalGovernment,ReviewofPropertyConditionsinthePrivateRentedSector,February
2014,48-50.
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The need for a proportionate action is also explicitly mentioned as far as enforcement is
concerned. The National Planning Policy Framework clarifies that effective planning
enforcement is important but, being enforcement action discretionary, local planning
authorities should act proportionately in responding to suspected breaches of planning
control: they should consider publishing a local enforcement plan to manage enforcement
proactively, in a way that is appropriate to their area; set out how they will monitor the
implementation of planning permissions, investigate alleged cases of unauthorised
development,andtakeactionwhereitisappropriatetodoso.254
Thesameholdsforsafetyregulationasrulesforthoseprovidingaccommodationshouldbe
proportionatetothescaleofoperation.Assumingthatthereisno“onesizefitsall”tofire
safety,theserulesarebasedonproportionality,requiringtheresponsiblepersontoassess
theriskinaparticularpremisesandtouseherassessmenttodeterminewhatprecautionsare
sufficienttoreducetherisk.Theresponsiblepersonwillneedtouseherjudgementtodecide
whatprecautionsareappropriateinthelightofthecircumstances.255Theserulesdonotset
outminimumstandards,butimposeonlocalauthorityadutytotakethemostappropriate
action, ranging from deal with the problems informally at first, to prohibiting the activity,
dependingontheseverityofthehazard.
6.13.4 UnitedKingdom(outsideLondon)
BesideLondonandthementionedpilotexperiments,theoldrulesarestillinforcefortherest
oftheUK,andtheaboveexaminedplanninglegislationapply.
The UK planning legislation specifies that the change of use of land or buildings requires
planningpermissionsofarasitconstitutesa“materialchangeintheuse”.Andevenifthere
254
DepartmentforBusiness,innovationandSkills,Independentreviewinthesharingeconomy.Governmentresponse,March
2015,2.8.
255
DepartmentforBusiness,innovationandSkills,Independentreviewinthesharingeconomy.Governmentresponse,March
2015,2.2.
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isnostatutorydefinitionof“materialchangeofuse”,itsmeaningislinkedtothesignificance
ofachangeandtheresultingimpactontheuseoflandandbuildings.256
Intheshort-termlettingsectorthismeansthatapersonmaybeabletorentherresidential
property,providedthatitdoesnotamounttoamaterialchangeintheuse.Inordertoverify
the occurrence of a “material change in the use” due to short term rentals, local planning
authoritiesmustpondereachcase,takingintoaccountallrelevantelements:theamountof
a property which is used as a short-term let, the frequency of use, whether the property
ownersliveinthepropertywhilstitisusedasashorttermlet(i.e.providedthatahouseis
primarilyusedasahomefirst,andshort-termlettingaccommodationasasecondaryuse).257
Itfollowsthatamarginalrelevancecanbeattachedtoresidenceinshorttermrentalsoutside
London,underUKlaw.
As already highlighted, this regulation makes residence a potentially relevant element for
determiningapplicableprocedures.Inaddition,duetheabsenceofdefinitecriteria,significant
roomisgiventoauthorities’discretion.258
Ontheotherside,theBritishgovernmentrecentlydefendedtheideaofdeveloping“sharing
cities.” Almost one million pounds were invested in two “sharing city pilots” - Leeds City
Region and Greater Manchester259 - which in 2015 and 2016 test a number of sharing
economy initiatives, experimenting with home and ride-sharing and social and health care
collaborativeprograms.Thesecitiesareencouragedtopilotlegislationthatwillmakeiteasier
forindividualstosub-letspareroomsandfornon-residentialpropertiestorentoutparking
spaces.260
256
Seesection55(1),TownandCountryPlanningAct1990.
DepartmentforCommunitiesandLocalGovernment,ReviewofPropertyConditionsinthePrivateRentedSector,February
2014,48-50.
258
CaseC-205/99AnalirandOthers[2001];CaseC-169/07Hartlauer[2009].
259
Leedswillbeinvolvedindevelopingnewapproachesfocusedonlocaltransports.Amorecomprehensiveapproachhas
beenadoptedwithregardtoManchester.
260
H.Goulden,8StepsTowardaSharingCity,NESTA,May17,2015,http://www.nesta.org.uk/blog/8-steps-toward-sharingcity#sthash.0ndPHTpj.dpuf; Department for Business, innovation and Skills, Independent review in the sharing economy.
Governmentresponse,March2015.
257
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The relaxation of restrictions created with the amendment of section 25 of the Greater
LondonCouncil(GeneralPowers)Act1973,andthecreationofanumberofsharingeconomy
initiativesintheaccommodationsectorinpilotcities,clearlymakethemaintenanceofold
rulesintherestofEnglandandWalesbothobsoleteandinconsistent.
Whiletheseinconsistenciesofnationallegislationarenotthemselvesunderthescrutinyof
Europeanlaw,nonethelesstheycanberelevantastheyclearlyshowthatthelegalsolutions
underscrutinyarenotproportionatetotheinteresttheyaimtoprotect.Forthisreason,a
revisionofrulesapplicableoutsideLondonishighlyconvenient.
6.14 Platform.Liabilityandduties
The e-Commerce Directive requires the service providers to act as intermediaries and to
maintainapassiveroletobeexemptedfromliability.261Art.15,section4,oftheDirectivesets
forththeprinciplethatserviceprovidershavenoobligationtoseekfactsorcircumstances
thatwouldindicateillegalactivity.However,thelevelofpassivenessdiffersamongthethree
typesofserviceproviders,andthefocusoftheDirectiveonspecifictypesofservicescreates
uncertaintyontheirapplicabilityoftheliabilityexemptionstonewtypesofservices,among
whichpeertopeerplatformsareoneofthemostrelevantcase.
MemberStateshavealmostverbatimtransposedarticles12,13and14ofthee-Commerce
Directiveonthespecialliabilityregimeandcourtsencounteredmanydifficultiesinapplying
thespecialliabilityregimetonewkindofonlineintermediaries,leadingtodivergingcaselaw.
In2011theECJhandeddownitsfamousdecisionL’Orealv.eBay,whichdefinespeertopeer
marketplaceasserviceproviders,thusentitledtotheliabilityexemptionlaiddownbytheeCommerceDirective.ButtheCourtalsoaddedthatthisexemptionappliesonconditionthat
theseplatformslimitthemselvesto“providinganintermediaryservice,neutrally,byamerely
261
TheDirectivedistinguishes:“Mereconduit”serviceproviders(art.12),wherethisliabilityexemptiononlyapplieswhen
the service provider is passively involved in the transmission of data; “Caching” providers (art. 13), who temporarily and
automaticallystoredatainordertomaketheonwardtransmissionofthisinformationmoreefficient;and“Hostingproviders”
(art.14)whostoredataprovidedbytheirusers.Theselasttypeofproviderscanbenefitfromtheliabilityexemptiononlyif
theyare“notawareoffactsorcircumstancesfromwhichtheillegalactivityorinformationisapparent”or“donothave
actual knowledge of illegal activity or information”. In all these cases, service providers are exempted from contractual,
administrative,tortious,criminalliability,civiloranyothertypeofliability,foralltypesofactivitiesinitiatedbythirdparties.
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technicalandautomaticprocessingofdata”,butnotwhentheyplay“anactiverole”,suchas
providingassistancetoitscustomers.Thedecisionleftmanyquestionsunsolvedandnational
court rulings continue to provide widely diverging interpretations in different cases and in
differentcountries.Asresult,thewaycourtsinterpretthespecialliabilityregimeacrossthe
EU,varieswidelyacrossEUMemberStatesandwithinlegalsystems(seesupra).262
262
LegalanalysisofaSingleMarketforanInformationSociety–Liabilityofonlineintermediaries,2009,concludesthat“It
seems that courts and legal practitioners find it difficult to apply the special liability regime, and seem inclined to find
argumentstoputasidethespecialliabilityregimeandinsteadreverttomoregeneralrulesoflegaldoctrine”.
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7
COMPARISONOFTHEFINDINGS
7.1
TaskIII–Comparisonofthefindings
Carry-outacomparisonanalysisbetweenthefindingsandthelegalassessmentdoneforeach
citycoveredbytheimpulsepaper.
7.2
AlegalmappingofregulationinFrance,Italy,UK
7.2.1 Whatstrategyforthecollaborativeeconomy?Oldrulesversusnewrules
Byconnectingpeopletoshareassets,servicesorboth,andfacilitatingamoreefficientuseof
underutilized resources, collaborative economy is playing an important role in making the
economicsystemmoreefficientandenhancingsocialwelfare.
Shorttermrentalsand,albeitinamuchmorelimitedway,homeswaphavedeeplychanged
theaccommodationsectorfortourisminmostEuropeancities.Infewyearsthesechanges
are already having a profound impact, altering urban environments in many ways. Paris,
Rome,MilanandLondonareallundergoingarapidanddrastictransformation,andthesame
canbesaidaboutbothmetropolitanareasandtouristiccitiesacrosstheContinent.
Afewcitiesacrosstheworldareattheheadofthisnewtrend.Commonlydefined“sharing
cities”(or,withasomehowoverlappingterminology,“smart”or“sustainable”cities)these
places characterize themselves as having a more systematic approach to promoting the
collaborativeeconomyandasadoptingprinciplesandpracticesthatenableandencourage
peopleandinstitutions(publicorprivate)toadoptthenewbusinessmodels.263
Whilenoneoftheinvestigatedcitiesdefineitselfas“sharingcity”,Londonisdistinguishable
fromtheothersfortheeffortstoputitselfattheforefrontofthecollaborativeeconomy,and
toquestionoldbarriersthatstoppeoplesharingtheirassets.Accordingly,Londonchangedits
rulesoncollaborativeeconomyinMarch2015withtheDeregulationAct2015(seesupra).As
clearlystatedintheaccompanyingExplanatoryNotestotheAct,thereasonforthischange
liesinthedevelopmentoftheinternetandinchangesinthewaythatpeoplewanttouse
263
T.SAUNDERS,P.BAECK,Nesta.Rethinkingsmartcitiesfromthegroundup,June2015.
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theirhome.Thesechanges“haveledtocallsfortheprovisionsofsection25toberelaxedso
thatpeopleinLondoncanletouttheirpropertyastemporarysleepingaccommodationfor
shortperiodswithoutobtainingplanningpermission”.264
Amoreconservativeapproachhasbeenadoptedbytheothercitiesstudiedinthissurvey.
Paris,RomeandMilanallapplytheoldrulestothenewscenario,withnochangeasaresult
of the spreading of peer to peer services in the accommodation sector. This is especially
significant in the cases of Rome and Milan: despite both cities amended regional rules in
touristaccommodationin2015265,theynonethelessdidnottakeuptheopportunitytoadapt
theirlegislationtonewpeertopeerschemes.
Whilebothapproachesareplausible,andoldrulesmaybeeffectiveregulatoryresponsesto
realandpresentmarketfailuresperfectlysuitedforthecollaborativeeconomy,itislikelythat
themanychallengesposedbypeertopeerservicesmaketheneedfornewrulescompelling.
7.3
ThenewchallengesforEUinthecollaborativeeconomy
7.3.1 Fromprofessionalstopeerproviders
Themostinvokedreasontoamendoldregulationforthecollaborativeeconomyisthenonprofessional status of peers operating through platforms. People who provide services or
sharetheirgoodsinthecollaborativeeconomyarenotfull-time,largescaleprofessionals-
Airbnb hosts are not hoteliers, Uber drivers are not professional taxi drivers. And since
professionals and peers are radically different, extending rules, which were originally
conceivedforaprofessionalprovisionofgoodsandservices,topeer-to-peerserviceswould
determine a disparate impact at the expense of sharing undertakings and would erect
insurmountablebarrierstoentryinthesegrowingmarkets(e.g.imposingadutytocomply
withhotelregulationsforallowingpeopletooccasionallyrentaspareguestroom).
264
265
SeeExplanatoryNotesoftheDeregulationAct2015
SeeLeggeRegionaleLombardia1.10.2015,n.27;RegolamentoRegioneLazio7.8.2015,n.8.
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7.3.2 Consumerprotection
On the other hand, the emergence of a peer-to-peer economy, where private, nonprofessional individuals provide services to customers, may lead to safety, health,
environmentalconcerns.Besideinformationasymmetries,anotherofteninvokeddangerof
peertopeeractivitiesisnegativeexternalities(themostobviousexampleinshorttermrentals
istheoccurrenceofguest-noiseortheriseinthepresenceofstrangersinabuilding).
In response to these risks and to avoid race-to-the-bottom dangers, safety protocols,
backgroundchecksandotherrulescanbeconceivedwiththeaimofprotectingconsumers.
Balancingthetwosomehowconflictingaspect–havingrulesdifferentthanthoseapplicable
for professionals and protecting consumers - is one of the most challenging aspect of the
collaborativeeconomy.
7.3.3 Theroleofplatforms
Theotherbigissueconnectedwiththeemergenceofcollaborativeeconomyisthediffusion
ofonlineplatformsthatofferaninfrastructureuponwhichpeersdependontoconnectto
eachother.
These companies often depict themselves as networks or “marketplaces”, not as service
providers.Onalegalground,suchadescriptionwouldleadtotheconclusionthatonlypeers
aresubjecttolegalobligationsanddirectlyresponsibleforensuringsafeandreliableservices,
andauthoritieswouldbesupposedtoenforceregulationonlyagainstindividualcustomers.
Whileplatformswouldjustberequiredtodoistoinformtheircustomersaboutdutiesand
liabilitiesandwarnthemaboutresponsibilitiesfornotcomplyingwithlocalregulations.In
sum,byframingtheplatformsas“marketplace”,thesep2pcompanieswouldnottobebound
by rules usually applicable to service providers, distancing themselves from potential
violationsandmakingenforcementmoredifficult.
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Inmakingachoiceonwhetherthesep2pplatformsareserviceprovidersornot,reference
can be made to ECJ decisions on the liability exemption laid down by the e-Commerce
Directive. Since this exemption applies on condition that platforms limit themselves to
“providinganintermediaryservice,neutrally,byamerelytechnicalandautomaticprocessing
ofdata”,butnotwhentheyplay“anactiverole”,suchasprovidingassistancetoitscustomers.
Giventhatp2pplatformusuallyperformanactiveroleintheintermediationamongpeersfor
the provision of goods and services, it is highly likely that the exemption provided by the
Directive would not be applicable to platforms operating in the accommodation sector.
However,anewpieceoflegislationishighlyrecommended.
7.4
HowexistingEUlawappliestocollaborativeeconomy
7.4.1 Justifiedrestrictions
Thecollaborativeeconomyisapowerfultoolofeconomicinclusionandopportunitythatmay
haveaprofoundpositiveimpactontheurbanenvironment.Ontheothersidediversegroups
- incumbents, entrants, consumers, neighbors – are involved in these changes, with
distinctive,conflictinginterests.Besidesafety,health,environmentalconcerns,andtheperil
ofnegativeexternalities,therisingshort-termrentalsmaydiminishtheavailabilityoflongtermrentalhousesinthemarket,especiallyaffordableones,andzoninglawsandbuilding
codesareofteninvokedtolimittheseactivitiesinordertoprotecthousingaffordability.
BothLondonandParisexpressedtheirconcernsonmayoftheseaspects.
In Greater London justifications for restrictions to the possibility to rent out a residential
premise in specific areas rely on the concern for issues arising from frequency of tenant
turnover,theriskoflosingexistingfamilyhousingfromthemainstreammarket,andlossof
amenity;fearofcrime,noiseanddisturbance,fireriskandhygiene.266
266
DepartmentforCommunitiesandLocalGovernment,PromotingthesharingeconomyinLondon.Policyonshort-termuse
ofresidentialpropertyinLondon,February2015,17.
131
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Frenchregulationimposingthechangeofuse,inordertorentoutresidentialpremiseona
shorttermbasis,aimsatkeepingthedevelopmentofurbanenvironmentundercontrol,not
toaggravatetheshortageofhousingandworsenthelackofhousingincitieslikeParis;andto
takeintoaccountsocialdiversityobjectivesandtobalancebetweenhousingandemployment
indifferentneighborhoodsofParis,inaccordancewithlocalhousingprogramandthelocal
developmentplaninforceinParis.267
No similar explanations are available for Rome and Milan, where there is neither new
regulation,norofficialdocumentsdealingwiththeproblems.
DiscriminationbasedonresidenceissurelyinviolationofEUlaw.However,thiswidearrayof
competingandsometimesconflictingaspectsofthesenewinnovativecollaborativepractices
must be assessed when defining the occurrence of a justified restriction regarding an
indistinctlyapplicablemeasure.
7.4.2 Proportionalityandnecessity
WhileitisupfortheMemberStatestodecideonthelevelatwhichtheyintendtoensurethe
protectionoftheobjectivesandofthegeneralinterestandalsoonthewayinwhichthatlevel
mustbeattained,MemberStatescandosoonlywithinthelimitssetbytheTreatyand,in
particular, they must observe the principle of proportionality, which requires that the
measuresadoptedbeappropriateforensuringattainmentoftheobjectivewhichtheypursue
anddonotgobeyondwhatisnecessaryforthatpurpose.
InParisthedistinctivelegaltreatmentforresidentsandnon-residentscreatesanobstacleto
thefreeprovisionofservices,capableofhinderingtheexerciseofthisfreedomandtodeter
theprovisionofservicesbyforeigners,onaccountofitsdisproportionatecoststowhichthese
rulesgiverise.Asaresult,residentscanrenttheirhomeforuptofourmonths,whilethis
267
http://www.paris.fr/services-et-infos-pratiques/urbanisme-et-architecture/demandes-d-autorisations/exercer-uneactivite-dans-un-logement-172#autorisation-3-le-changement-d-usage-a-caractere-reel-avec-compensation_5.
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opportunity is precluded to non-residents, regardless the length of the rent. In London, in
order to pursue a similar outcome, a limitation on the number of days a property can be
rented out has been devised (ninety days) equally applicable to all, with no distinction
between residents and non-residents, and proportionality is taken into account in both
regulationandenforcement.NolimitationofthiskindexistsinItaly.
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8
8.1
CONCLUSIVEREMARKSANDFINALRECOMMENDATIONS
Anewregulatoryframework
Therecentemergenceofthird-partyintermediaries-theonlineplatformsthatmediatethe
exchange among peers – makes the case for regulation less compelling. Platforms have a
ubiquitous control over economic agents operating through the platform. In this task
platformscanmitigateinformationasymmetriesandcreatestrongincentivesforeconomic
agents. After all, in most cases platforms’ interests are aligned with the general one -
facilitatingtheexchangeamongpeersandfosteringasafeandefficientdevelopmentofonline
market,alloftheseattrivialornocosts.
Thismakesastrongargumentforreconsideringtheroleofregulationinthemarket,making
theroleofpublicinterventionmoreandmoremarginal.
However, platforms may mitigate most, but not all, market failures: not all information
asymmetriesaresolvedbyplatformsandinsomecasesthereisstillastrongneedtoprotect
customers from frauds and dangers. Further, if digital platforms can solve part of market
failures addressed in the past through regulation, peer-to-peer activities may create
additional problems. The new collaborative services de facto deregulate heavily ordered
traditionalservicesandadditionalrequirementsmaybeimposedtoaddressthoseissuesthat
cannotbeentirelydelegatedtoprivateordering.
Forthesereasonstheremaystillbethecasethatregulationispreferabletogovernsomeof
thesefailures,especiallyinthosecaseswhereplatformshavenointeresttocorrectthem.And
it is crucial to define a new regulatory toolkit that delegates governance to platforms and
reallocatesresponsibilities,leveragingplatforms’self-governingcapacity,whileatthesame
timeretainingpartoftheprocessforpublicregulators.
8.2
Strictrulesversusprinciples
Inaddressingtheregulationofcollaborativeeconomyachoicemustbemadebetweenstrict
rulesandprinciplesor,morelikely,acombinationofthetwo.
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In some cases, setting out minimum standards may be the most appropriate solution,
providing certainty to economic agents. For example, a rule determining the maximum
numberofdaysaresidentialpremisecanberentedoutonashorttermbasisisapractical
solution.Inothercases,acasetocaseapproachcanbeadopted.
Astrictruleispreferablefordelimitingthescopeofapplicationofprofessionalrulesversus
new collaborative rules and define the non-professional status of peers operating through
platforms, so limiting the application of rules, conceived for a professional provision of
services,topeer-to-peerservices(i.e.restrictingshort-termlettingofresidentialpremisesto
amaximumnumberofdaysperyear).
On the contrary, principles are better suited to address safety concern and consumer
protection. Rather than giving a strict prescription, a principle prescribing that regulation
shouldbe“proportionatetothescaleofoperation”,canbethenecessaryflexibilitytoaddress
anewandchangingphenomenon.Assumingthatthereisno“onesizefitsall”solutioninthe
collaborativeeconomy,legislationshouldrequirenonprofessionalserviceproviderstoassess
theriskoftheiractivityandusethisassessmenttodeterminewhatprecautionsarereasonably
practicable. The service provider has to use her judgment to decide what precautions are
appropriateinthelightofparticularcircumstances.268
8.3
Enforcement
Thelastissuetobeaddressedisrelatedtotheenforcement.Theunprecedentedopportunity
tocreatenewcommercialservicesbypeersmayresultinamassivedisregardofregulation
andexposecitiestotherisksoflackofcontrol.
Forsuchascenariotwocomplementingstrategiescanbeadopted.Thefirstoneisconsidering
theplatformnotonlyasrulerbutalsoasenforcerofsuchaself-regulatoryregime,making
useofitsself-correctingcapacity(v.supra).Thesecondoneisaflexibleuseofenforcement
268
DepartmentforBusiness,innovationandSkills,Independentreviewinthesharingeconomy.Governmentresponse,March
2015,2.2.
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actionandareasonabledegreeofflexibilityissuggestednotonlyinregulationbutalsoin
enforcement.
With specific reference to the accommodation sector, regulations for those providing
accommodationshouldbeproportionatetothescaleofoperation(i.e.someonerentingout
aspareroomafewnightsayearshouldnotbesubjecttothesamelevelofregulationasa
businessrentingoutseveralhomes).Localplanningauthoritiesshouldactproportionatelyin
responding to suspected breaches of planning control, as rules for those providing
accommodation should be proportionate to the scale of operation, in the light of their
particularcircumstancesandthoseoftheirguests.269Andpublicauthoritiesshouldtakethe
most appropriate action, ranging from deal with the problems informally to sanction
misconducts,dependingontheseverityoftheinfraction.
269
ThisdegreeofflexibilitybothinregulationandenforcementisadoptedbyUKlegislation.
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