A top European lawyer has said French real estate law is not applicable to Airbnb.
European Court of Justice Advocate General Maciej Szpunar said the company's online services instead constitute an information society service.
The case has gone to the ECJ as Airbnb's European operations are based in Ireland.
France had accused Airbnb of breaching the country's real estate laws and regulations, and Paris prosecutors filed an indictment against the company.
However, Airbnb had insisted it did not act as a real estate agent and therefore it was not subject to the French rules.
According to Advocate General Szupunar, Airbnb's web portal connects guests with hosts for short-term accommodation.
However, he claims the firm "does not exercise control over the essential procedures for the provision of those services".
Therefore, the opinion finds, it "constitutes an information society service".
The Advocate General's opinion is not binding, and a full ECJ judgement will be delivered later this year.
In a statement, Airbnb welcomed the Advocate General's opinion.
They said: "[It] provides a clear overview of what rules apply to collaborative economy platforms like Airbnb and how these rules help create opportunities for consumers.
"We also want to be good partners and already we have worked with more than 500 governments around the world on measures to help hosts share their homes, follow the rules and pay their fair share of tax."
