Competition Law in Tourism

690 COMPETITION LAW IN TOURISM 2006/123/EC of the European Parliament and of the Council of 12 December 2006, on services in the internal market; c) Unnecessary and non-proportional technical requirements and mandatory minimum services to be provided; and d) Limitation of the number of properties dedicated to this activity by the owner or imposing forbidden or unjustified limited areas or limiting the typologies (i.e. forbidding rental of part of a property). 4. PORTUGUESE ALOJAMENTO LOCAL LAW The law on house rental in force is LawNo. 68/2018 of 22 August. As mentioned above, this regulation has created a more exigent legal regime, namely conceding powers to municipalities to exercise stricter control on licencing and operation of establishments. There are provisions in the legal regime which, in our opinion, may create non-proportional distortions of competition between house rental establishments and tourist accommodation. a) Different nature of the services – the fact that house rental activity and establishments are considered as non-touristic is an unjustified commercial limitation, which creates an imbalance with tourist accommodation and a competition distortion; b) Zoning – in Article 7 of the new law, power is given to the municipalities to create areas where the vacation rental is excluded or seriously limited25. These contention areas are only applicable to house rental and not to tourist accommodation and can be defined and enforced by the municipalities. They are only required to preserve the social reality of the zone, which is a very wide precondition, not integrated in more objective requirements, and only applicable to house renting, which can provoke distortion on the competition with tourist accommodation in the affected zones; and c) Operational requirements, for instance, the obligation of having a property manual containing instructions for home appliances, collection and selection of household waste, noise and owner contacts in four different languages. 25 For instance, limitation of seven properties per owner or caducity of the registration in case of sale of the property.

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