By Lee Hyo-sik
Airbnb has lodged a complaint against Korea’s antitrust agency for its decision ordering the San Francisco-based accommodation-brokering website to revise its policy terms on cancellations.
The company said Monday it lodged an objection to the Fair Trade Commission (FTC) last December, demanding it retract its earlier decision. A month earlier, the FTC issued a ruling obliging Airbnb, which brokers people who list or rent residential properties on its online platform, to revise its policy provisions requiring those making reservations to pay 50 percent of the lodging charge as a cancellation fee.
The company was also ordered to slash its brokering fee, which amounts to 12 percent of the room charge, within 60 days after the FTC issued a corrective order.
The FTC is the world’s first antitrust body to impose disciplinary measures on Airbnb, which operates in 190 countries, for its business practices.
With the FTC showing no intent of changing its decision, Airbnb is set to take the issue to court by hiring Kim & Chang, Korea’s largest law firm that has represented a number of foreign businesses operating here.
“Our policy provisions are designed to protect the interests of both hosts and guests using our services,” said Edelman Korea, Airbnb Korea’s PR agency. “Our return policies are universal anywhere in the world. We have and will continue to work with the Korean government and abide by the laws.”
The FTC confirmed Airbnb filed an objection to its ruling, adding its review committee is looking into the case.
“Nothing has been decided yet,” an FTC official said. “Given that we are required to announce our decision within 60 days after the complaint is filed, we will make a decision early next month.”
The official said Airbnb should follow local rules because it conducts business here.
“The company argues it cannot make an exception for Korean consumers because its rules are uniform around the globe,” he said. “However, our stance is that Airbnb should follow the country’s rules and regulations because it deals with local consumers.”