BLOOMINGTON, Ind. – An opinion issued March 13 by the 9th U.S. Circuit Court of Appeals — which likely will dramatically impact the regulation of platform-based technology firms nationwide — closely followed the line of argument laid out in a brief filed with the court by two Indiana University Kelley School of Business professors, Abbey Stemler and Matt Turk.
“This case is going to be huge as it will dramatically impact how the sharing economy is regulated. It could also have profound impacts on the regulation of the internet in general,” said Stemler, an assistant professor of business law and ethics at Kelley (pictured left).
Stemler and Turk, also an assistant professor of business law and ethics, filed the amicus brief in May on behalf of two California municipalities in the case, HomeAway.com Inc. & Airbnb vs. City of Santa Monica.
The case involved Airbnb and HomeAway’s challenges to an ordinance rolled out by the City of Santa Monica and represents a much larger battle between local governments and Silicon Valley. In particular, the Santa Monica ordinance requires an Airbnb or HomeAway host to have a short-term rental license before the companies can collect a fee for their booking services.