A federal judge has refused to immediately block a San Francisco ordinance that would fine Airbnb for booking rentals that were not registered with the city.
But U.S. District Court Judge James Donato said in his ruling on Tuesday that he still wants to hear additional argument before making a final decision.
Donato rejected some of Airbnb's arguments in favor of a preliminary injunction but said the company may have legitimate concerns about its ability to comply with the ordinance.
San Francisco allows short-term rentals but requires hosts to register with the city and limit the length of stays.
The city says the vast majority of San Francisco listings on Airbnb are unregistered.
Airbnb argued the ordinance would force it to screen and remove listings. An email to the company was not immediately returned.