Multinationals in Europe Continue to Flout International Law in Israel’s Occupied Territories

In the rolling hills of Israel’s occupied West Bank, Airbnb hosts such as Dalit Ohana offer serene stays to visitors, nestled in Biblical mountains southwest of Nablus. Her farm is ecological, boasting a ceramic studio within walking distance from a heated pool.

But beneath the tranquil veneer this settlement of 2,600 people called Yakir lies a darker reality - one intertwined with international law violations and human rights abuses. According to the International Court of Justice (ICJ)¹, multinational corporations like Airbnb, Caterpillar, and European financial institutions such as BNP Paribas and HSBC are actively complicit in supporting Israel’s illegal settlement activity in these territories. Some companies like Volvo and Hyundai also play a significant role in perpetuating these violations by supplying the machinery used to displace entire communities and families. By discounting their legal and ethical obligations, these companies are flouting international law and directly contributing to the systemic abuse of Palestinian rights. They are also disregarding equally binding legislation on social, economic, and labour rights (see box below).

Airbnb and the Soft Underbelly of the Occupation

Let us return to Yakir. This settlement an hour’s drive from Tel Aviv is where Airbnb host Dalit Ohana offered us her home through the company’s platform, inviting us to enjoy a tranquil getaway, a “green ecological unit” with nature and a “coffee cart”. Airbnb’s role as go-between in this 43-year-old settlement may seem benign at first glance, but the reality is far more insidious. By listing properties in illegal Israeli settlements, it helps to normalize and profit from an occupation that has been condemned by the international community for decades. Yakir was established on land confiscated from the nearby Palestinian village of Deir Istiya. According to the Applied Research Institute of Jerusalem (ARIJ), 659 dunams (approximately 163 acres) of Deir Istiya’s land were confiscated to construct the settlement. Over the years, Yakir has expanded, with development projects for a growing population dependent on the confiscation of more land. On June 5, 2024, Yakir settlers bulldozed Palestinian land near the town of Salfit, to create a fenced buffer zone.

The settlement’s expansion is seen as part of Israel’s broader effort to entrench its presence in the occupied West Bank. In March 2024, Israel instigated the largest land seizure since the 1993 Oslo Accords², 800 hectares of land near the West Bank-Jordan border. It’s part of the 1,500 hectares of land taken so far this year, a record in the past 30 years³. As Palestinian anti-colonization activist Nazmi al-Salman reported, the purpose of the bulldozing and demolitions is to create a buffer zone for the benefit of the illegal settlements, further isolating Palestinian communities from their agricultural lands.

Hospitality Offered Throughout the Territories

This brutal reality stands in stark contrast to the “serene” Airbnb listings in Yakir. Similar offers are posted for homes in other illegal settlements, like Givat Harel (“in a beautiful area between vineyards and fields, our house is in a quiet location with a crazy view”), Giv’at Janoah (“from the window of the home (enjoy) direct touch with the nature”), Ariel (“a spacious modern flat”), Shilo (“an ecological Jacuzzi and pampering shower”) and Kdumim (“Island of Tranquility” holiday apartment) – to name but a few. In 2018, Airbnb did pledge to remove listings in these settlements after pressure from human rights groups, only to reverse that decision in 2019.

During our own online interaction with Airbnb hostess Dalit from the Yakir settlement, we soon were met with a fervent defence of Israel’s right to the land, couched in religious and messianic rhetoric. She dismissed concerns about violence against Palestinian civilians and framed the occupation as a divine right, reflecting the deeper ideological justification for these illegal settlements. “We don’t feel the situation happening in the south and north”, she wrote. “You are part of my people, we are together with Israel and I pray every day that the Messiah will come and we will all receive a great light of God!”

When turning to Airbnb to question such messages, the company sent the following answer:

Upholding the policies and standards that protect our community is very important to us. We’ve given your case and its details careful consideration, and we determined that Thank you for informing us about the Host actions. Our review is complete now, and we won’t be able to offer additional support on this case at this time. We understand that this might not be what you’d hoped for.

The exchange underscores Airbnb’s inability to answer such grievances. Another hotel broker site in the tourism industry, Booking.com is currently fighting a legal campaign over its role in normalizing illegal settlements. In May 2024, human rights groups in the Netherlands filed a criminal complaint against them⁴, accusing the Dutch company of money laundering from its business operations in the West Bank.

The complaint was filed by the European Legal Support Centre (ELSC) alongside a coalition led by Al Haq, Somo, and The Rights Forum. They allege that Booking.com has been laundering money linked to Israeli war crimes and profiteering. In response to the complaint, Booking.com denied the allegations, stating that no laws prohibit listings in Israeli settlements and that various laws would prevent divestment from the region. However, this defense does little to mask the fact that both Airbnb and Booking.com are profiting from illegal activity that contributes to the violation of Palestinian rights.

Arms Dealing and European Investment

The arms trade between Israel and Europe is perhaps the most visible - and deadly - form of multinational involvement in the occupation⁵. Companies like Elbit Systems, Israel Aerospace Industries, and Rafael Advanced Defense Systems provide the weapons and technology that enforce Israel’s military control over Palestinian territories. But these arms companies do not operate in isolation. European financial institutions are deeply involved in funding and facilitating the arms trade, providing the capital necessary for Israel to maintain its military dominance.

A 2024 report by Pax for Peace revealed that European banks, pension funds, and other financial institutions continue to invest heavily in the Israeli arms industry. The top 20 European creditors alone have provided over €36.1 billion in loans and underwritings to these companies. The financial backing of European banks like BNP Paribas, HSBC, and Société Générale has become crucial in keeping Israel’s military well stocked and active. Their support also facilitates the military protection Israel provides for its settler movement. As of writing, they have helped 700,000 settlers to live in the 279 settlements established across the West Bank and Jerusalem.

European Banks and the Economic Lifeblood of the Settlements

Without the financial backing of European banks, Israel’s settlement enterprise would struggle to survive. A December 2023 report by the Don’t Buy into Occupation Coalition (DBIO)⁶ revealed that more than 700 European financial institutions are invested in companies involved in illegal settlement activities. These banks hold stocks and bonds worth $115 billion in 50 companies that are directly complicit in the construction, surveillance, and economic sustainability of these settlements. European financial institutions and companies are thus key players in the construction, agriculture, and technology sectors that sustain the settlements. Recent figures reveal that more than $171 billion in lending and underwriting has been provided by European financial institutions to companies involved in illegal settlement activities. Without this financial support, the infrastructure and economic sustainability of Israeli settlements would be severely weakened, affecting everything from housing projects to surveillance operations that control Palestinian movement.

The settlements are not self-sustaining; they rely on a continuous flow of European investments to maintain their infrastructure, expand their populations, and secure their place in the region. This economic dependence highlights how deeply Israel’s occupation is tied to European capital.

Arms, Tourism, and Economic Dependence

Thus, Israel’s occupation of Palestinian territories is also an economic enterprise, sustained by European investments across various sectors. Beyond the obvious violations of humanitarian law by the firms mentioned above, these companies are also in breach of labour and social rights protected by the International Labour Organization (ILO). Palestinian workers in the settlements face harsh conditions, wage disparities, and restrictions on unionizing - violating ILO conventions on fair labour practices. European companies that support these settlements, whether through direct investment or the provision of services, are contributing to these violations. They could come under renewed pressure as the ILO field a complaint on September 27, 2024, against the Israeli authorities for ”blatant violations of the ILO Protection of Wages Convention”⁷ . The abuses documented range from unpaid wages to benefits being withheld from over 200,000 Palestinian workers in Gaza and the West Bank.

A Growing Movement for Accountability

While many companies in Europe remain deeply invested in Israel’s occupation, there are signs of change. In June 2024, Norwegian pension fund KLP divested £69 million from Caterpillar, citing the company’s involvement in the destruction of Palestinian homes in Gaza⁸. This decision sets an important precedent for other financial institutions to follow and demonstrates that divestment can be a powerful tool in holding companies accountable.

Meanwhile, an initiative by the Starbucks Workers United group, expressing solidarity with Palestinians, led to a widespread boycott of the company, and resulted in Starbucks losing almost $11 billion in shares⁹. More anecdotally, Puma announced it would end its sponsorship of Israel’s Football Association in 2024 following consumer boycott calls over the illegal West Bank settlements¹⁰.

The ICJ’s recent ruling on the illegality of Israel’s occupation of Palestinian territories provides a clear legal framework for enforcing accountability. Countries and companies that continue to invest in settlements are not only ignoring UN resolutions: they are also violating the Fourth Geneva Convention on the protection of civilians in conflict zones and occupied territories.

In the face of the deadly escalation of Israeli violence in the Gaza Strip and Lebanon, the upsurge in deaths, assaults and human rights violations in the West Bank is attracting less media attention. However, the growing movement for accountability, from consumer boycotts to divestment campaigns in the Global West, offers a path forward. If multinational corporations and financial institutions continue to profit from the occupation, they should be prepared to face legal action, consumer backlash, and further divestment campaigns. It’s time for Europe to take responsibility for its role in sustaining Israel’s occupation - and for companies to be held accountable for their complicity in these violations.

Daniel Brown is an independent reporter for Orient XXI; Emma Tatham is a Sustainability Consultant