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Government seeking to curb holiday home renting business

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Business blamed for housing shortage and excess tourism

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Platform under investigation not identified

(Adds potential fine in paragraph 4, minister in paragraph 5)

By Inti Landauro

MADRID, Dec 18 (Reuters) - Spain has opened an

investigation into an unidentified holiday apartment renting

platform for failing to delete thousands of rental offers in

another attempt to curb a business blamed by many for housing

shortages and soaring prices.

The probe is part of a general crackdown on tourism rentals

via sites such as Airbnb ( ABNB ) and Booking.com

which many Spaniards say is creating excess tourism, cramping

the housing stock and making renting unaffordable for locals.

A Consumer Rights Ministry's department had since the summer

ordered the platform to remove thousands of listings deemed

"illegal advertising" without licences for tourism use, a

ministry spokesperson said.

As the adds stayed up, a disciplinary process began, with

the platform facing a potential fine of up to 100,000 euros

($104,940.00) or four to six times the profit made on the

practice, a ministry statement said.

"It is the ministry's responsibility to make sure no company

in this country is above the law," Minister Pablo Bustinduy told

reporters on Wednesday.

A fine by the ministry can be challenged in court.

Airbnb ( ABNB ) and Booking.com, the largest platforms operating in

Spain, which is one of the world's biggest tourist destinations

with more than 80 million visitors a year, did not immediately

respond to requests for comment.

Spain's toughest move so far in the curb came from

Barcelona's mayor Jaume Collboni when in June he ordered a total

ban on tourism rentals by 2028.

The ban is being challenged in courts by associations

representing tourist apartment owners.

Airbnb ( ABNB ) urged him to reconsider, arguing that the ban only

benefits the hotel sector while failing to address excess

tourism and the housing crisis.

The consumer rights ministry last week also launched an

investigation into agents who handle sometimes hundreds or

thousands of platform accounts on behalf of owners.

Other European countries including Italy or Croatia have

also taken measures to limit the growth of tourism rentals.

($1 = 0.9529 euros)