Geo-blocking and other geographically-based restrictions when shopping and accessing information in the EU - BEUC response

Very often consumers are prevented from ordering a product in another Member State or faced with higher prices than locals when booking a service (e.g. transport or entertainment) abroad just because of the country they come from. This is because some companies “geo-block” their services and erect artificial barriers for consumers living in a
different EU Member State than where the company is established. Consumers should have the possibility to buy from retailers across the EU and, if that is not possible due to justified reasons, they should be informed why.

Geo-blocking practices include:

• Refusal to sell;
• Refusal to deliver;
• Rerouting;
• Price discrimination;

BEUC has identified two main sectors in which geo-blocking is detrimental to consumers, particularly to those living in countries with limited local offers: the audio-visual sector and the online sale of goods and online services (e-commerce). 

There are several reasons why companies refuse to sell consumers in other member states. Many of these reasons could be justified e.g. logistics reasons and tax regimes, while others should not e.g. market segmentation caused by commercial practices to maximise profit or by exclusive distribution preventing passive sales. This is a problems which seems to be more prominent among big online marketplaces.

We underline that BEUC does not advocate for the imposition of an obligation for companies to sell across the borders. However, the freedom of party autonomy – an equally important principle - should be limited in case it leads to unjustified discrimination, which is not compatible with the Single Market concept of equal treatment and fair competition.

The EU should therefore clarify the factual and legal grounds that shall not be used to refuse requests by consumers residing in other Member States.