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Airbnb Sues Anaheim Over Short-Term Rental Law

Airbnb has filed a lawsuit against the city of Anaheim, California, over a law that holds the home-sharing site liable when users post listings for illegal short-term rentals.

Anaheim—home to Disneyland and Angel Stadium—has seen an explosion of such rentals that cater to travelers seeking cheaper alternatives to hotels. Last month, the City Council voted to tighten regulations, adding fines for companies like Airbnb that allow illegal postings.

In its lawsuit, Airbnb says that's a violation of free speech and a federal law that shields websites from responsibility for information posted by users.