EU: Widespread geo-blocking could breach antitrust rules

A European inquiry into the e-commerce sector has found that widespread geo-blocking could be in breach of EU antitrust rules in some cases.

The European Commission has published its initial findings from research conducted as part of an ongoing antitrust sector inquiry launched last year into the e-commerce sector.

A survey of more than 1,400 retailers and digital content providers found 38 per cent of those selling consumer goods and 68 per cent of digital content providers geo-block customers from other EU countries.

Margrethe Vestager, commissioner in charge of competition policy (pictured), said: “The information gathered as part of our e-commerce sector inquiry confirms the indications that made us launch the inquiry: Not only does geo-blocking frequently prevent European consumers from buying goods and digital content online from another EU country, but some of that geo-blocking is the result of restrictions in agreements between suppliers and distributors.

“Where a non-dominant company decides unilaterally not to sell abroad, that is not an issue for competition law. But where geo-blocking occurs due to agreements, we need to take a close look whether there is anti-competitive behaviour, which can be addressed by EU competition tools.”

The Commission said geo-blocking linked to agreements between suppliers and distributors may restrict competition in the Single Market in breach of EU antitrust rules. However, this needs to be assessed on a case-by-case basis.

Full content: Scottish Legal News

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