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Much of the international community, including the US and the EU, opposes all Israeli settlements built in the occupied Palestinian territory and considers them among the largest obstacles to peace.
Husam Zomlot, ambassador at large for the Palestinian government, said it was seeking an immediate change of policy from the company.
"Certainly we will take further action. This is strikingly illegal," he told AFP, accusing the company of "illegally profiting from occupation".
"Such acts by international firms and the private sector have been a main contributor to the continuity and escalation of the situation."
US-based Airbnb declined AFP an interview, providing only a short statement.
"We follow laws and regulations on where we can do business and investigate concerns raised about specific listings," it said.
One listing in the settlement of Tekoa in the southern West Bank highlights that it is 15 minutes from Jerusalem and offers views of the "spectacular Judea desert landscape," the Israeli word for part of the West Bank.
Others stressed the tranquility of the area, while always listing their location as Israel.
Omar Barghouti, Palestinian rights activist and co-founder of the Boycott, Divestment and Sanctions campaign which pushes for an economic boycott of Israel, called on the company to change policy.
"Airbnb can and should immediately exclude all Israeli settlements from its offerings as a significant first step towards complying with its human rights obligations under international law," he said.
Israel seized the West Bank and east Jerusalem in the 1967 Six-Day War.
About 380,000 Israelis live in 135 West Bank settlements, with another 200,000 in east Jerusalem.
With agencies.
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