MonkeyParking, the Italian startup that was recently ordered to cease and desist by the San Francisco City Attorney, has remained defiant.

”We are not stopping any service as we know we are not illegal, so there is no reason to do it,” Paolo Dobrowolny, the company’s CEO, told Ars.

On Monday, San Francisco City Attorney Dennis Herrera cited a city code that forbids drivers who "enter into a lease, rental agreement, or contract of any kind" for public parking spots. The violation is punishable by up to $300 in fines.

MonkeyParking’s app lets users auction off their public parking spaces. The Rome-based company has until July 11, 2014 to comply, and then it could face a lawsuit brought by the city. In addition to the City by the Bay, the startup also operates in the Italian capital.

In a statement sent to Ars, MonkeyParking claimed that it was, in fact, not auctioning off public parking spaces. Rather, the company says it auctions off information about the parking spaces.

“The real issue here is that a local ordinance is being misapplied to wrongfully target our service,” the company said. “This is happening with our company and other companies operating in the social sharing space. This is yet another example of a local ordinance that was drafted in a world pre-shared economy which local authorities are improperly applying to a shared economy service.”

The startup also claims that its users have the First Amendment right to express and sell such information.

“We are consulting with legal counsel as we speak, but we are confident that we would prevail any such legal challenge against our service," the company said.