REGULATION OF SHORT-TERM HOUSING RENTALS IN SPAIN 695 relevant restrictions to competition. A second regulatory wave began in 2017, in which large cities started using land planning powers and tools to regulate short- -term accommodation rentals. The CNMC6 has a legal mandate to preserve and promote competition in all economic sectors to the benefit of consumers. To comply with its mission, the organisation monitors not only market operators, but also the public sector. Under its advocacy powers, the CNMC regularly monitors regulation to ensure that it does not restrict competition unnecessarily. It has played an important role in improving the quality of regulation for short-term rentals in Spain, preventing some of the most harmful restrictions to competition and consumers. This article analyses the evolution of regulation and the advocacy activity of the CNMC against unnecessary restrictions to competition. It will also describe the regulatory waves of short-term accommodation rentals, and investigate regulations with efficient economic regulation while presenting the CNMC’s advocacy. 2. REGULATION OF SHORT-TERM HOUSING RENTALS IN SPAIN Short-term housing rentals were subject to national law until 2013. Law 29/1994, which established the legal regime for this type of rental between 2010 and 2013, provided a very permissive regime, which gave freedom to the parties to agree on the conditions of rentals7. An amendment to the national law in 2013 transferred powers to the Spanish regions8 in order to regulate short-term housing rentals9. Between 2013 and 2018, 14 out of the 17 regions amended their touristic legislation to cover short- -term housing rentals, while the remaining regions still have plans to update their regulations10. In addition, more recently, Madrid, Barcelona and other large Spanish cities have also regulated this form of rental. We can distinguish 6 The National Commission for Markets and Competition (Comisión Nacional de los Mercados y la Competencia, CNMC) applies competition rules in all economic sectors. It also has regulatory powers in electricity, telecommunications and certain transportation markets. 7 Until 2010, the regime was that of Order of 17 January 1967 and Royal Decree 2877/1982, of 15 October. Between 2010 and 2013, they were regulated in Law 29/1994, of 24 November, on urban rentals (Ley 29/1994, de 24 de noviembre, de arrendamientos urbanos). 8 Spain is divided into 17 autonomous communities (“Comunidades Autónomas”) and 2 autonomous cities (“Ciudades Autónomas”). 9 Law 4/2013, of 4 June. 10 The Regions of Catalonia and the Balearic Islands had adopted legislation in 2012.
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