Global commercial giants have been operating in this area for years, but no regulation has been put in place. No agreement has yet been reached at local or regional level. The issue remains a hot potato for the autonomous regions. Although the local institutions have not yet commented on the issue, which is increasingly becoming a global problem, a decisive change is now in sight.

As EL MUNDO and the Balearic edition of El Día announced in April, the EU plans to introduce regulation for this type of rental. The Commission has already taken the first steps by stating that this problem affects all member states equally. The measures are not welcomed by everyone, however, especially since hotel owners in particular see illegal rentals as one of the main causes of the tourist oversaturation in Mallorca during the high season.

First steps towards regulating holiday rentals

The European Commission has now presented guidelines that provide for a uniform regulation for all collaborative economy platforms - such as Uber (taxis) or Airbnb (accommodation) - in all EU member states with the aim of ensuring the taxation of income and the protection of consumers and any employees. At the same time, however, individual countries are advised that a ban should only be considered as a "last resort".

Governments are also called upon to distinguish between private individuals who offer individual or occasional services and "professional providers", for example by setting a "framework for action". "The European economy needs product and service innovations. Our role is to create a legal framework within which new business models can develop while at the same time guaranteeing consumer protection, fair taxation and fair working conditions," explains Jyrki Katainen, Vice-President of the European Commission responsible for jobs, growth, investment and competitiveness. At the same time, Katainen continued, he also wanted to counteract the fears of traditional providers who see the new platforms as a threat to their business. He stressed that the new model would by no means replace the traditional institutions.

The Commissioner responsible for the internal market, industry, entrepreneurship and SMEs, Elzbieta Bienkowska, stated that it was important to ensure "clarity" in the market. She also pointed out that "there will be no new regulations", but only assistance for "the implementation of existing rules". To this end, the Union's executive is planning to issue a guide against which existing rules can be examined in a "quick and sustainable manner", even if they are not mandatory for the Member States.

Brussels sees the collaborative economy as an opportunity to grow the European economy by offering all those who want to experiment with setting up a business a chance to "test the waters" and create new demand for alternative target groups. Nevertheless, this opportunity must be prevented from developing into a "parallel economy". It therefore seems essential to create uniform guidelines for all European Member States that guarantee that platforms are taxed and also ensure consumer protection and "fair" working conditions.

Liability and consumer protection

A requirement for authorisation or licensing for service providers should only be made when this appears absolutely necessary for relevant objectives in the general interest. An absolute ban on activities should remain the last resort. According to Brussels, the platforms should not be subject to any authorisation or licensing requirements as long as they only act as intermediaries between consumers and the actual service providers (such as accommodation or transport).

«We encourage the platforms to continue to act on a voluntary basis against illegal online content and in this way to strengthen consumer confidence», emphasises Commissioner Bienkowska, who at the same time urges the European Member States to check that existing regulations are up to date and adequacy and to ensure that they meet «the requirements» of a collaborative active economy.

Shared platforms can be exempted from liability for information they store for service providers. However, they should be responsible for services they themselves offer, such as payment processing.

With regard to consumer law, Brussels states that consumer protection against unfair commercial practices can be guaranteed "without creating excessive obligations for those private individuals who only provide services occasionally".