Competition Law in Tourism

COMPETITION CHALLENGES IN THE ACCOMMODATION SHARING 689 Although the provisions ruling each activity are different and less exigent for house rental, this does not lead to disloyal competition, as the specific characteristics of tourist accommodation make this activity more demanding in order to protect all involved. The approval of laws on touristic house rental has been the object of much discussion in EU countries. In contrast with other countries and regions22 or with other areas of the sharing economy, such as transportation, discussion about legal provisions on touristic house rental in Portugal has never been about disloyal competition with hotels and resorts, but about the preservation of cities and housing rights. 3.2. Barriers in national law to reaching an effective competition The Report on New Challenges and Concepts for the Promotion of Tourism in Europe23 clearly indicates that, in consumer areas, national laws should apply the same rules to sharing economy activities in tourism which rule “traditional” touristic activities. The same document highlights that any action taken by public authorities must be proportional and flexible to grant equal opportunities between sharing economy and “traditional” companies. However, this must be balanced with the protection of other interests such as urban planning, protection of cities and protection of neighbours, amongst others. A strong vacation rental activity benefits the competition in the tourist accommodation market, increasing the variety of supply and reducing prices. Therefore, the necessity is highlighted by the non-introduction of unnecessary and non-proportional barriers to the vacation rental market. The EU and national competition agencies, with emphasis on the Spanish CNMC24, have appointed intolerable limitations to competition on national law: a) Limitation of the rental periods which some laws have created on the number of days on which the owner of the house is able to rent the property; b) Unnecessary administrative licencing requirements, such as any requirements more than the authorization schemes foreseen in Directive 22 Spain, for instance. 23 Report on New Challenges and Concepts for the Promotion of Tourism in Europe (2014/2241(INI)), http://www.europarl.europa.eu/doceo/document/A-8-2015-0258_EN.html. 24 E/CNMC/003/18, Estudio sobre las viviendas de uso turístico en España (2018), Comisión Nacional de Mercados y Competencia https://www.cnmc.es/sites/default/files/2133063_2.pdf.

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