The Conflict Between Airbnb and New York Is Only Beginning

Airbnb Inc. is in talks with New York officials about potentially settling a lawsuit the company filed last month against the state and city governments. The company is challenging a new law that punishes people renting their homes. But regardless of the outcome of those talks, many rentals on Airbnb will remain illegal thanks to an older law, and officials must still figure out what to do about it, posing fundamental problems for both the startup and the government.

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