MonkeyParking has given up fighting San Francisco. After City Attorney Dennis Herrera deemed the parking spot auctioning startup illegal, MonkeyParking initially refused to shut down. Now they're suspending service to "avoid any future misunderstandings."

Silicon Valley's "sharing economy" startups are known for skirting the law, but now they're blatantly violating it. Days after San Francisco's City Attorney asked Apple to ban three "predatory" parking apps from the App Store, MonkeyParking is refusing to shut down, claiming auction off public parking is "free speech."

Despite the tech-friendly climate within City Hall, San Francisco is coming down on a new breed of parking spot-sharing apps. The city issued a cease-and-desist letter demanding that Apple pull them from the App Store for violating California law.