A Story of Cooperation Turned Sour; Airbnb Sues San Francisco over New Rules

A Story of Cooperation Turned Sour; Airbnb Sues San Francisco over New Rules

A story of cooperation between a city and a Silicon Valley company headquartered in San Francisco just turned sour.

 In a twist, on Monday, the platform that allows short term rentals sued the city over a June 7 unanimous decision taken by the San Francisco Board of Supervisors. The law that's slated come into effect from August will impose $1,000 fine per day on Airbnb for every unregistered host using the service. In case Airbnb fails to comply with the, there could be misdemeanor charges slapped on it.

Now, the burning question in the lawsuit is whether the company is protected by the Communications Decency Act. It is a law that was created in1996 law safeguarding "interactive computer services" from accountability for third-party postings on their sites.

For Airbnb, the company founded in San Francisco in 2008, the city was among the first places to legalize short-term rentals of apartment in 2014. Earlier, many times the Airbnb executives have said that San Francisco city officials understand the manner in which to work with innovative technology companies.

However, things have changed in the last two years when the city and the startup drafted a law allowing Airbnb to operate widely in San Francisco though advocates of affordable housing raised concerns over housing crunch.

Now the company says, the rules which it helped to create "do not work" and are extremely complicated.