New ‘Geo-Blocking’ Regulation to come into effect | Hudson McKenzie

New ‘Geo-Blocking’ Regulation to come into effect

From 3rd December 2018, all businesses within the EU must comply with the EU Geo-Blocking Regulation.

The compliance is specifically aimed at all EU businesses that sell either B2B or B2C, in which the requirement will mean that all customers of businesses within the EU will be allowed to purchase in the same way as other customers within the EU.

To specify, this means that EU customers cannot be restricted to only purchasing from any website that is specific to one territory, even if there are different prices stated for different territories.

The regulation comes as an initiative of the EU to stimulate cross-border trade within the EU Single Market, especially regarding e-commerce. This is because customers will now have the same access rights and terms, regardless of where they are based location wise.

Post-Brexit however, customers within the UK shall not benefit from the geo-blocking regulation, yet any UK based businesses and traders that are selling into the EU will still be required to comply with the regulation regardless.

Furthermore, specific goods and services such as transport, retail and audio-visual services shall be excluded from the Regulation generally.

As a brief summary. the ‘Geo-Blocking’ regulation prohibits the following:

  1. Offering any goods or services under different conditions within different member states within the EU.
  2. Discrimination between different forms and means of payment.
  3. The blocking or limiting of a customers access to an online portal, also known as ‘geo-blocking’.

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