Does anyone know what the story is with holiday lets in Mallorca?

[Youknowaboutthepaint]

We'd booked an Air BnB for the summer.

Had a message from AirBnB that the booking has been cancelled because the property was unlicensed.

Also a message from the LL saying that this is because hotlels objected to being undercut by AirBnb and authorities "caved" and have stopped issuing licences for 3 years. From my reading it's actually about reducing holiday lets so that locals can afford rent.

LL is offering to rent it to us anyway at a reduced price

My friends are keen to go ahead on the basis that it will be hard to find alternative accomodation. I smell scam and even if it's all true am concerned about what happens if the authorities shut him down either before we go or while we're there.

The following is an overview of the new regulations: 1-Properties cannot be listed on commercials platforms such as Airbnb and Homeaway, real estate websites or social networks unless they have a tourism license. Landlords will receive a fine of up to €40,000 for illegal listings and sites a penalty of up to €400,000.

So it's the listing of them rather than the renting of them that's illegal?