Peer-to-peer accommodation sharing platform Airbnb is expected to refer new laws limiting flat rentals in the Balearics to the European Union.

A crackdown by the Spanish island’s government started this week with a new licensing law brought in that it is hoped will reduce the number of beds available on the islands.

People who offer flats for rent illegally could face fines of up to €400,000 as the islands look to limit the impact of tourism on the local housing market.

However, the move has drawn criticism from those who see it an attack on the main industry of the islands and one that will reduce supply and choice and drive up prices.

The legislation introduces a limit of 623,624 beds for tourists and there is a plan to cut that by a further 120,000 over the next few years.

Airbnb told the Majorca Daily Bulletin the new law restricts the free market and it would refer the new law to the European Union.

Read the full article at Travel Weekly.

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