Did You Get 'Geo-Blocked' On Black Friday This Year?

According to a European Commission survey the majority of websites do not let consumers buy from another EU country1.

Traders use various practices restricting online cross-border sales based on nationality, residence or place of establishment.

These discriminatory practices can occur both online and off-line and include: denying delivery to customers from other Member States, declining foreign payment cards, automatically re-routing foreign customers to the version of the website tailored to their home country.

A new EU Regulation aims to put an end to unjustified geo-blocking, creating new opportunities for customers and businesses across the EU. The Regulation (EU) 2018/3022 ("the Regulation") took effect on 22 March 2018 in all EU Member States and applies from 3 December 2018.

Who does it concern?

The Regulation applies to traders offering goods and/or services to customers in the EU, irrespective of their country of establishment. Hence, U.S.-based companies engaging in cross-border transactions with EU customers have to comply with the Regulation.

The new legal framework benefits:

consumers who are nationals of, or residents in, an EU Member State; and businesses that are established in a Member State and purchase goods or services within the EU for the sole purpose of end-use. What are the key provisions of the Regulation?

The Regulation imposes on traders the obligation to treat EU customers that are in the same situation on equal terms, without regard to their nationality, place of residence or place of establishment.

This obligation particularly applies to the following areas:

Access to websites The blocking of access to websites and re-routing without the customer's prior consent are prohibited under Article 3 of the Regulation. Customers have the right to access the version of their choice of e-commerce websites. Sale of goods and services Under Article 4 of the Regulation: A customer who buys goods (e.g. clothes) which the trader does not deliver to the customer's Member State is entitled to delivery in the Member State where the trader offers delivery under the same conditions as domestic customers. A customer who wishes to purchase an electronically supplied service (e.g. web hosting) from a trader established in another EU country is entitled to do so in the same manner as local customers. A customer who buys a service (e.g. accommodation) that is provided in a certain physical location in another EU country where the...