E-commerce: The EU Commission plans to prohibit geo-blocking

The EU Commission intends to promote cross-border online trade and remove obstacles. This was announced by Margrethe Vestager, EU Commissioner for Competition Policy, at a conference held in Berlin.

According to the data of the Commission, half of all EU citizens already made purchases on the Internet in 2014. However, only around 15 % of them ordered goods from a retailer in another EU member country. This can be attributed partly to language barriers, different consumer preferences and statutory regulations in the individual countries. There also indications that companies attempted to prevent cross-border trade using specific measures. In this context, geo-blocking is a particular source of irritation to the Commission. This practice determines whether or not customers may use certain websites or Internet services, depending on their particular location. The IP address is used for identification purposes.

By 2016, the EU Commission plans to focus its attention on online trade and subsequently take the necessary action. If it encounters any obstacles to competition, it could initiate inquiries to ensure compliance with EU regulations on practices which restrict competition and the abuse of a dominant market position in accordance with Articles 101 and 102 of the Treaty on the Functioning of the European Union. The Commission had already taken steps in 2014 against media markets that are closed to competition in order to enable the EU-wide use of Pay TV services, for example. (Source: EU-Kommission/rf)

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