EU ANTITRUST: HOT TOPICS & NEXT STEPS

Prague, Czechia

EU ANTITRUST: HOT TOPICS & NEXT STEPS 2022

to protect customers and ensure an appropriate level of safety and hygiene. Short term leasing of private flats has a detrimental external influence on the local housing market, most notably a rising scarcity of living space and an increase in rental costs. Furthermore, an increase in the number of tourists in residential areas might have a negative impact on the quality of life in those areas, such as noise pollution or a scarcity of parking spaces (Ladychenko and Golovko, 2018, pp. 455 459). Permanent vacation rentals of private apartments must be distinguished from occasional vacation rentals of regularly occupied flats or rooms, such as when the regular occupants are away. No flats are taken from the property market in the latter situation since there is no permanent reallocation of ordinary apartments to permanent holiday accommodation. Various steps can finally counteract the possible negative consequences of growing short-term rental of residential dwellings. The landlord’s straightforward application of house rules may be a less restrictive approach to likely noise pollution. This method is used by many private landlords and may be adequate for managing guest behavior. This is especially true for digital platform bookings, where an evaluation is undertaken following the overnight stay. These ratings enable landlords to target their guests on the one hand, while also creating incentives for visitors to act responsibly on the other, as they may be barred from returning to the platform if their rating profile is poor. If there is noise pollution, landlords may be notified under a current registration requirement for private landlords. If there are any further incidents, they may be barred from providing private lodgings. The surge in short-term rentals has resulted in a dearth of parking spots in residential neighborhoods, which might be solved by offering extra free parking spaces for residents as well as paid guest parking spaces. In both cases, putting annual restrictions on the number of overnight stays should help to mitigate the unfavorable external effects. Setting a limit may help ensure that no ordinary units are permanently removed from the market, while also allowing landlords to rent out their properties on occasion. A total prohibition on the occasional short term leasing of private residences may be enforced only in extreme circumstances, such as due to building planning and building requirements. In addition to the above-mentioned reasons for regulating private accommodation providers, it must be assessed to what degree intermediary platform regulation is necessary. We argue that there is no longer a need for special regulation due to concentration tendencies and the competitive difficulties that come with them. However, one key question is whether intermediary platforms for private accommodation should be legally required to provide insurance for any harm caused as a result of its use in order to protect clients. Requiring platforms to 5. A reason for regulation of intermediary services or no regulation due to concentration tendencies?

503