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Airbnb is suing hometown San Francisco to block rental rules

San Francisco, which faces a housing shortage, has struggled with how to regulate eight-year-old Airbnb.

By Eric Newcomer | Updated on June 27, 2016
This Oct. 28, 2015, photo shows the Golden Gate Bridge and San Francisco skyline from the Marin Headlands above Sausalito, Calif. (AP Photo/Eric Risberg)

(Bloomberg) – Airbnb Inc., the second-most highly valued San Francisco-based startup, is suing its hometown over claims the city’s rental restrictions violate protections for internet companies and its free-speech rights.

The company is hoping to avoid thousands of dollars in daily fines it could face when a new San Francisco law takes full effect next month. The law, passed with a 10-0 vote by the city’s Board of Supervisors, would require Airbnb to make sure that hosts on its platform have registered with the city.

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