- Progress has been made tackling geo-blocking in the EU
- Enforcement rules in member states vary significantly
- Audiovisual services and other key sectors not covered by current rules
Unjustified geo-blocking which limits consumers’ freedom by restricting their access to online goods and services across the EU remains a problem, according to a new report by the European Court of Auditors (ECA). While the 2018 Geo-blocking Regulation aimed to address such discrimination based on nationality or residence, it still faces practical challenges in the member states. Enforcement arrangements should be made stronger and uniform, the auditors say. Customers should be better informed of support and protection options. The auditors also recommend examining whether to extend the rules against geo-blocking to sectors such as audiovisual services that are not yet covered.
Geo-blocking occurs when, for example, traders operating in one EU member state block or restrict access to their online interfaces – such as websites and apps – by customers from other member states, or when conditions for obtaining goods and services depend on a customer’s location. The Geo-blocking Regulation adopted in 2018 recognises that the practice may be justified in certain cases, for instance when EU countries have different legal requirements (e.g. age limits for buying alcohol) or because a trader decides not to sell its goods to customers in another member state. However, when there is no such justification, EU rules prohibit any trader that sells to EU residents from geo-blocking them.
“Geo-blocking limits consumers’ opportunities and choices, causing a lot of customer dissatisfaction and raising barriers to the free exchange of goods and services in the EU’s digital single market,” said Ildikó Gáll-Pelcz, the ECA Member responsible for the audit. “EU rules are in place to prevent this practice, but we found shortcomings when it comes to practical implementation.”
For example, when businesses are the end users that purchase goods or services, disputes may be difficult to resolve because it is unclear who can provide assistance, especially when non-EU traders operating in the EU are involved. In general, customers and traders are not sufficiently aware of consumers’ protection options, and may be unaware that bodies exist at local and EU level to provide assistance. In addition, enforcement measures against non-compliant traders differ significantly between member states. The rules on legal jurisdiction are not clear enough, and it is also difficult to establishwhich member state (i.e. the customer’s or the trader’s) should impose penalties for infringements. In some EU countries, infringements may lead to criminal liability.As regards penalties, the auditors found major variations between member states (from €26 to €5 million, and in some cases based on the trader’s turnover).In essence, the auditors stress, the fact that member states apply different approaches entails the risk of there being an uneven level-playing field in the EU’s single market.
When it was adopted, the Geo-blocking Regulation excluded certain areas that were identified as problematic, such as audiovisual services(e.g. motion picture distribution services, on-demand platforms, and radio/TV services etc.). The European Commission has engaged with the industry as regards the availability of and broader access to audiovisual content, but stressed the need to gather further information before considering any new measures.Giventhe forthcoming review of the Regulation, the auditors feel it would be advisable to analyse the pros and cons of a potential extension so as to see whether it makes more sense to extend the scope of the Geo-blocking Regulation, or whether it would be better to amend other relevant sector-specific regulations.
Background information
The Geo-blocking Regulation was adopted in 2018 to address issues of discrimination against customers in the EU based on their nationality and place of residence or establishment. Responsibility for enforcing EU rules lies with the member states through designated bodies that also assist consumers in disputes with traders.
Read the ECA report
Read the EU Commission replies