Feature: Italy proving to be a big challenge for companies in the sharing economy

The fast-growing international "sharing economy" has run into a kind of roadblock in Italy.

The sharing economy usually refers to non-professionals competing for clients with established hotels or taxi companies, or even to serve gourmet meals, architectural services, or even scooter rides. Companies popping up in the sharing economy have run into resistance in some countries. But in Italy, the reception has been particularly harsh.

"There are some characteristics that make Italy especially problematic for the sharing economy," Davide Pellegrini, president of the Italian Sharing Economy Association, said in an interview. Pellegrini pointed to the existence of powerful professional associations as an obstacle. These groups have been eager to block competition from non-members that do not pay the same professional fees and have the same training and certifications.

The Italian government, meanwhile, is eager to crack down on the sharing economy because most transactions take place at least in part in the black market economy, meaning transactions are often under-taxed or not taxes at all.

"There is no way the Italian government will allow a black market industry to pop up and take business away from an existing industry that pays taxes," Hildebrandt and Ferrar macroeconomist Marco della Seta told Xinhua. "The government is seeking tax revenue wherever it can find it."

Uber, a car sharing service, and AirBNB, a lodging service, are the two best-known examples of the new sharing economy.

A Milan judge in late May outlawed Uber's basic "Uberpop" service under pressure from tax operators who complained the new competitor was not required to meet any of the standards traditional taxis must meet, including the size and type of the vehicle, vehicle inspections, and a commercial certification for the driver. Uber says it will appeal, and the company will be allowed to operate until the appeal is heard, but it seems clear the company will have to make some changes to continue operations in the long term.

"If Uberpop could guarantee security and quality of the service, the taxi drivers would have less of a case," Pietro Paganini, president of the Italian think tank Competere, said in an interview.

AirBNB is also under pressure from hotel and bed-and-breakfast associations, though so far the company has managed to avoid legal challenges.

Other companies have had mixed results: a host of Italian meal sharing services have seen growth stalled amid competition and legal concerns, a group of lawmakers (mostly architects) have lobbied Italian ministries to outlaw crowd-sources architectural designs, and startup Scooterino, a Uber-type service that uses scooters, is going to great lengths to stress it is not a competitor to taxis.

Pellegrini said the law should take scale into account when evaluating these enterprises.

"It's one thing for a couple who has a small apartment they rent out from time to time to make 500 euros (555 U.S. dollars) extra each month," he said. "It's another for someone who owns five, six, or seven apartments and is basically operating as a hotel."

But most economists say that most restrictions on the sharing economy should ultimately be lifted.

"I don't think it's right that these kinds of services are blocked: they provide competition and in the long run competition is better for the companies involved and for consumers," Roberto Pasca di Magliano, an economist at La Sapienza University in Rome, told Xinhua. "Some changes need to be made so that regulations are followed and taxes paid. But these kinds of enterprises are ultimately good for an economy." Endit