France’s highest court has ruled that Airbnb can be held financially responsible when users illegally sublet properties through its platform without landlord permission.

The Court of Cassation’s 7th January decision marks a significant shift in how digital platforms are treated under French law, rejecting Airbnb’s claim that it functions merely as a neutral hosting service.

The ruling means Airbnb can be ordered to pay damages to property owners whose tenants illegally sublet through the site, including returning both rental income and commissions earned from such transactions.

Two test cases

The court examined two cases involving illegal subletting.

In the first, a social housing tenant in a tourist region was subletting her apartment through Airbnb without authorisation. The housing association that owned the property sued both the tenant and Airbnb for the rental income.

While lower courts convicted the tenant, they initially refused to hold Airbnb liable, granting it status as an internet host.

In the second case, a Paris tenant sublet her apartment in a tourist district without the owner’s permission, again using Airbnb. The trial court ordered both the tenant and Airbnb to pay damages to the landlord, including the commission Airbnb earned from the transactions.

The appeal court upheld this decision, ruling that Airbnb could not claim internet host status.

Not a neutral intermediary

The Court of Cassation determined that Airbnb plays an active role beyond simply storing content and making it available online.

Under EU law, an internet host must act as a simple intermediary providing only neutral, automatic data storage. The court found Airbnb fails this test by imposing rules on listings, verifying compliance, and promoting certain properties through its “Superhost” designation.

This active involvement gives Airbnb knowledge of and control over listings—incompatible with internet host status under French law.

Without such protections, Airbnb can be held liable when users employ its platform for illegal subletting. Property owners can now pursue the company directly for damages, including rental payments and commissions earned from unauthorised transactions.

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