The Spanish government has fined property rentals giant Airbnb €64m (£56m) for advertising unlicensed apartments.
It also said that some of the properties advertised in the popular tourist destination were banned from being rented.
The fine, which cannot be appealed against, means Airbnb has to withdraw the adverts promoting unlicensed properties. The BBC has contacted Airbnb for comment.
Spain, one of the top most visited countries in the world, has a buoyant tourism economy but that has fuelled concerns about unaffordable housing, as high demand from visitors raises the price of housing, pushing local people out of the market.
"There are thousands of families who are living on the edge due to housing, while a few get rich with business models that expel people from their homes," said Spain's consumer rights minister Pablo Bustinduy in a statement.
