Shannon Stapleton/Reuters
Airbnb has agreed to drop a lawsuit against New York City over a recently passed law that imposes hefty fines for illegally advertising units on home-sharing sites. The company had argued that the law, with fines of up to $7,500, could put a massive dent in its revenue. In New York City, the company’s largest market in the country, hosts brought in about $1 billion last year. On Friday, however, the company agreed to drop the suit as long as the city goes after only hosts, and not Airbnb, to collect fines. The move is a win for New York authorities, who for years have butted heads with Airbnb over short-term lodging in the city, which is illegal if done for fewer than 30 days in accordance with a 2010 law. Airbnb has faced scrutiny in various cities for the activities of some hosts, who essentially run illegal hotels in multiple locations. In a statement, Airbnb described the settlement as “a material step forward for our hosts.”