Airbnb challenges NY rental probe in court

[NEW YORK] Airbnb Inc, an alternative to hotels in thousands of cities, challenged a New York state demand for information on whether the online, home rental service violates housing and occupancy tax laws.

An Albany state judge heard arguments on Tuesday on the company's bid to quash New York Attorney General Eric Schneiderman's request for data about people who rent out their homes, a move which Airbnb described as a "government-sponsored fishing expedition". The court clash pits the San Francisco-based technology business that supporters say should be welcomed as a boost for local tourism against housing advocates who argue the service is driving up rents and turning affordable accommodation into illegal hotels.

"Today, the attorney general made it clear that he remains determined to comb through the personal information of thousands of regular New Yorkers just trying to make ends meet," David Hantman, head of global public policy for Airbnb, said in a statement.