The high-profile property rental company had been accused last year of listing illegal rental properties on their site.
The breach is due to Balearic laws stating that holiday rental properties must be properly registered.
However, Spain’s Supreme Court of Justice has overruled the fines ruling in favour of the online property portal stating that they are not responsible for overseeing local laws.
The ruling stated that: “Airbnb cannot be given the obligation to carry out an exhaustive and detailed review of all adverts published on their website.”
TripAdvisor and HomeAway were also fined 300,000 euros each in 2019 with TripAdvisor paying their fine but HomeAway is yet to respond to the allegations.
The acting minister for tourism in Mallorca, Bel Busquets stated that efforts to ensure that online holiday rental platforms comply with Balearic law are being stepped up after the series of offences which have been committed in the Balearics since regulations came about and which have attracted negative publicity in the UK and Germany.
Hundreds of property owners face being sanctioned for having failed to comply with the holiday rentals regulations.