Competitor Sues Airbnb, Says Business Model Is Illegal

After making money on the platform, two Airbnb hosts are now suing the company for being an unlawful "business model," according to a complaint filed Friday. “What may seem a novel and convenient enterprise is, at bottom, entirely illegal,” the lawsuit reads.

Plaintiffs Francesco Plazza and Sylvie Naude—two proprietors of Indigo House, a competitor—are seeking damages including Airbnb’s fees collected as hosts and guests, punitive damages, and 400% penalty for fees collected within the past six years, The Real Deal reports.

The suit comes just after claims that Airbnb purged 1,000 controversial listings from its site. On the flip side, a recent study by hospitality research firm STR found no evidence that Airbnb cuts into hotel profits. (Only Indigo's, it seems.) [TRD]

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