HomeAway Sues Claiming San Francisco Gives Airbnb an Edge

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HomeAway Inc., the Texas-based online vacation rental company, sued San Francisco to overturn a new law legalizing short-term rentals that it says favors hometown rival Airbnb and discriminates against other tourist rental businesses.

An ordinanceBloomberg Terminal approved by city supervisors that Airbnb was involved in drafting grants the San Francisco-based company a local monopoly over the short-term rental business by adopting its business model, HomeAway alleged in a complaint filed there today in federal court.