Berlin law hobbles Airbnb rental business - CNET

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With a single, very long word, the city of Berlin has significantly restricted Airbnb and other companies that let people rent apartments to tourists, businesspeople and other travelers.

That word, Zweckentfremdungsverbot, refers to a law that prohibits rental of full apartments through such online services. Hosts are still permitted to rent out a portion of their homes, according to the Guardian.

The law, passed two years ago but going into effect only on Sunday, is designed to counteract rising rents in the German capital. It's "a necessary and sensible instrument against the housing shortage in Berlin," Andreas Geisel, Berlin's head of urban development, told the Local.

It also spotlights the regulatory difficulties of the so-called sharing economy, in which people offer their own cars, apartments or other resources through an online marketplace. That's meant trouble with traditional businesses subject to heavier govement controls and, often, taxation. Uber's ride-hailing service has angered taxi drivers, and Airbnb likewise has created enemies in the hotel business.

Airbnb and a Berlin-based rival, Wimdu, didn't immediately respond to requests for comment.