Airbnb Accuses Mississippi Town of Restricting Rental Market

Home-sharing travel platform Airbnb Inc. sued the city of Biloxi, Miss., alleging the local government conspired to severely restrict short-term rentals.

Biloxi, along with the Mississippi Hotel & Lodging Association, colluded to prohibit short-term rentals from operating at all in large swaths of the city, according to a complaint filed Wednesday in the US District Court for the Southern District of Mississippi. Biloxi is known as a major casino and resort destination and is home to dozens of hotels.

“The conspiracy between Biloxi and the HLA has had the effect of excluding a significant number of STRs from competing against ...