HomeAway.com v. City of Santa Monica, No. 18-55367 (9th Cir. 2019)Annotate this Case
The Ninth Circuit affirmed the district court's dismissal of HomeAway.com and Airbnb Inc.'s (the Platforms) lawsuits challenging the City of Santa Monica’s Ordinance 2535, which imposes various obligations on companies that host online platforms for short-term vacation rentals. The panel held that the district court properly dismissed the Platforms' complaints for failure to state a claim and dismissed as moot the appeals from the denial of preliminary injunctive relief.
The panel rejected the Platforms' claim that the ordinance was preempted by the Communications Decency Act (CDA) because it required them to monitor and remove third-party content, and held that neither express preemption nor obstacle preemption applied to the ordinance. The panel also rejected the Platforms' contention that the ordinance impermissibly infringed upon their First Amendment rights, and held that the ordinance regulated nonexpressive conduct, specifically booking transactions, not free speech. The panel held that, even assuming the ordinance would lead the Platforms to voluntarily remove some advertisements for lawful rentals, there would not be a severe limitation on the public's access to lawful advertisements, especially considering the existence of alternative channels like Craigslist. The panel reasoned that such an incidental burden was far from a substantial restriction on the freedom of speech.