First, the city of Paris warned Airbnb, and now it has taken action. It is now filing a lawsuit against Airbnb for 1000 illegal rental adverts. Paris claims that the rental website has been violating French laws that limit owners from renting out short-term apartment and properties using the sharing platform for more than 120 days in a year.

Last year, France passed a law that permits files of up to 12,500 Euros for every illegal posting. According to the law, each ad is required to have a registration number. This lawsuit could cost Airbnb more than 12.5 million euros, ($14 million) if the ads are to be considered illegal. Mayor Anne Hidalgo claims that the goal of filing this lawsuit is to send a “short across bows “for an unauthorized rental that undermines Paris neighbourhood.

Airbnb, on the other hand, claims that despite Paris being the second most destinations in terms of active rentals, the rules there are inefficient, disproportionate and in breach of European rule. Paris experiences more than 65,000 short-term listing and putting a limit, and restriction only hurts the city. Following this rule, Airbnb and other platform have been imposing an automated limit in cities where this rule applies. After the property has been booked for 120 nights, the calendar is blocked, and no more booking is made.

Critics of sharing platforms like Airbnb say that they bring unfair competition to hotels and ends up running some areas that are safe into sterile and tourist only zones. Creating this anti-social behaviour by the guest is not good for the market. Speaking to BBC News late last year, Airbnb spokesperson said that is it important for residents and community to benefit from an incredible record number of visitor in their cities. Founded in 2009, Airbnb allows people who want to rent part or their entire home to guests through their website.