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This Commentary analyses the history, technology, uses, legality, and circumvention of geo-blocking, which affects customers and businesses both inside and outside the EU. Marketa Trimble examines each of the provisions of the 2018 EU Geo-Blocking Regulation, including provisions on non-discriminatory access to online interfaces, goods and services, and means of payment.
In February 2018 the EU adopted the Geo-Blocking Regulation that prohibits any attempts to restrict consumer access to e-commerce websites on the basis of their nationality or country of residence. This paper seeks to evaluate the impact of that policy on crossborder e-commerce. We use page view data for about 10k e-commerce websites over the period February 2018 to October 2019, approximately 10 months before and after the entry into force of the regulation in December 2018. We classify the data in cross -border country pair traffic between countries of origin of visitors and countries of establishment of websites. Despite the fact that there may still be a significant amount of delivery restrictions in cross-border trade, we conjecture that any variation in traffic to e-commerce websites will correlate with variations in monetised e-commerce, even if modest. We find that the regulation increased real cross-border e-commerce activity inside the EU from 9.2% to 13%, depending on model specifications. It increased cross-border trade between EU consumers and e-commerce sites anywhere in the world by 11.2% to 11.9%. Applying different criteria for the definition of purely domestic websites slightly weakens the results for intra-EU cross-border trade and gives it a further boost for worldwide cro ss-border trade.
This is an open access book. Media industry research and EU policymaking are predominantly tailored to large (and, in the latter case, Western) European markets. This open access book addresses the specific qualities of smaller media markets, highlighting their vulnerability to global digital competition and outlining survival strategies for them. New online distribution models and new trends in the consumption of audiovisual content are limited by, and pose new challenges for, existing audiovisual business models and their legal framework in the EU. The European Commission’s Digital Single Market (DSM) strategy, which was intended e.g. to remove obstacles to the cross-border distribution of audiovisual content, has triggered a heated debate on the transformation of the existing ecosystem for European screen industries. While most current discussions focus on the United States, Western Europe, and the multinational giants, this book approaches these industry trends and policy questions from the perspective of relatively small and peripheral (in terms of their population, language, cross-border cultural flows, and financial and/or symbolic capital) media markets.
On 27 February 2018, the European Union adopted the EU Geo-Blocking regulation, which has applied since 3 December 20181. This Regulation prohibits unjustified geo-blocking, and other forms of discrimination, based on customers’ nationality, place of residence, or place of establishment and is particularly relevant to all businesses selling online in different EU Member States, whether or not they are located in the EU. Furthermore, the proposal bans the blocking of access to websites and the use of automatic re-routing if the customer has not given prior consent. One of the most significant exceptions to the Regulation, however, concerns audio-visual services and other electronically supplied copyright-protected content. As regards audio-visual services, these are fully excluded from the scope of the Geo-Blocking Regulation, mirroring the exclusions from the scope of the Services Directive. Electronically supplied services linked to (non-audio-visual) copyrighted content and neighbouring rights are also excluded from the main Regulation's absolute prohibition of applying different general conditions of access laid down in Article 4 (e.g., music streaming and downloading, e-books, games). In this regard, however, the Regulation mandates a first short-term review which should assess, by March 2020, in particular, the scope of the Regulation, both as regards the specific scope of Article 4 and more generally as regards sectors not covered by the Services Directive, including audio-visual services. In the context of activities related to the first short-term review, this Eurobarometer survey was launched to measure consumers’ demand and assess the difficulties they face when trying to access online content services meant for other EU countries.
Enabling power: European Communities Act 1972, s. 2 (2). Issued: 13.11.2018. Sifted: -. Made: 06.11.2018. Laid: 12.11.2018. Coming into force: 03.12.2018. Effect: 2002 c. 40 amended. Territorial extent & classification: E/W/S/NI. General. EC note: Regulation (EU) 2018/302 on addressing unjustified geo-blocking and other forms of discrimination based on customers' nationality, place of residence or place of establishment within the internal market and amending Regulations (EC) No. 2006/2004 and (EU) 2017/2394 and Directive 2009/22/EC ("the Geo-blocking Regulation") applies in the law of the United Kingdom by direct effect. However, Article 7 (1) of the Geo-Blocking Regulation requires Member States to designate a body or bodies responsible for adequate and effective enforcement of the Regulation and Article 7 (2) requires Member States to lay down the rules setting out the measures applicable to infringements of the provisions of the Regulation. These Regulations implement those provisions
Ever since the adoption of the Digital Single Market Strategy in 2015, and in response to the Commission's findings in its E-commerce Sector Inquiry of 2015, the concerns about the restrictions on online trade that persist in the digital market have increased. Above all, geo-blocking practices regarding not only goods and services, but also digital content (such as movies, music, eBooks, or videogames) have become one of the main barriers to the achievement of a European Digital Single Market.Over the past 5 years, the market has witnessed a series of developments towards the increase in cross-border availability of goods, services and digital content through the adoption of different legislative instruments at EU level. Among these instruments, the Geoblocking Regulation represents the most important one. However, although ambitious from its outset, this piece of legislation has ended having quite a limited scope and impact on the Internal Market, being at odds with some fields of EU law, in particular with EU competition law.The enforcement of EU competition law rules in certain recent cases has shown that its relationship with the Geo-blocking Regulation is not entirely clear. However, the revision of the content of the Regulation in March 2020 should not be overlooked. The need for a sound legal regime against territorial restrictions on online trade should be a priority for the Commission during such revision, making the necessary changes to certain provisions of the legal text in order for it to truly complement the already existing legal acquis in the field of competition law.
Enabling power: European Union (Withdrawal) Act 2018, s. 8 (1). Issued: 18.03.2019. Sifted: -. Made: -. Laid: -. Coming into force: In accord. with reg. 1 (2). Effect: S.I. 2018/1153 revoked. Territorial extent & classification: E/W/S/NI. EC note: Regulation (EU) 2018/302 revoked. For approval by resolution of each House of Parliament
The 2019 Mystery Shopping Survey on territorial restrictions and geo-blocking in the European Digital Single Market (MSS 2019) analyses the occurrence of geoblocking practices and other sales-limiting practices linked to the territorial location of cross-border shoppers that are used by e-commerce websites in the former EU28. The European Commission has since 2015 developed actions to improve cross-border sales opportunities for consumers and businesses. The Geo-blocking Regulation (EU) 2018/302 (GBR) addressed the issue of unjustified "geo-blocking" and other forms of discrimination based on customers' nationality, place of residence or place of establishment within the EU's internal market. The present study was commissioned within the context of the European Commission's activities for the first-short term review of the GBR, with a view to monitor the first implementation of the Regulation, and its first contribution to the functioning of the internal market. Unjustified geoblocking and discrimination pursuant to the GBR can occur at several points in the cross-border shopping process. Other sales limiting practices may also have an impact on cross-border sales. The present study distinguishes the following phases, and analyses geoblocking and sales-limiting practices in each of them: access to a website; availability of products; registration; delivery to the shopper's country; price differences and payment. Throughout this process, there are several instances in which a cross-border shopper may not be able to proceed in the same way as a domestic shopper would do. In order to identify such practices and analyse the potential impact of the GBR on their frequency, the results of the present study were compared with the results from the 2015 Mystery Shopping Survey on territorial restrictions and geo-blocking in the European Digital Single Market, which was conducted using the same methodology.
Geo-blocking, which basically refers to the practice of preventing customers from accessing websites or content of the website, has become widespread in the European Union. More particularly, the most affected sector by it is the audiovisual sector. Against this background, EU consumers have not been sitting idly by. They have expressed their dissatisfaction with geoblocking by contending that it erects virtual barriers where there should be none. Others have eased their frustrations by falling back on VPNs to circumvent these obstacles. By contrast, the stakeholders of the audiovisual industry - especially European players in the audiovisual market - have intensively lobbied against a geo-blocking ban. Their main argument is that artificially partitioning the Internet landscape through geo-blocking is indispensable to preserve the principle of copyright territoriality upon which their current business model is founded. Elimination of geo-blocking would adversely affect content production and subsequently decrease consumer's welfare. Hence, the redline of this Master's thesis is this war of words on the geo-blocking issue. Put it differently, it investigates how cross-border access to online audiovisual content services could be secured without harming the incentives of the audiovisual industry to produce and distribute content. To answer this question, this research has been conducted as following. Firstly, it outlined the inadequacy of the legal framework prior to the adoption of the 2015 Digital Single Market Strategy to deal with the issue. Indeed, the legal framework does little to nothing to address geo-blocking per se and/or to tackle the underlying reasons for the use of it. Secondly, it observed that the Geo-blocking Regulation which entered into force in 2018 does not alter the status quo since audiovisual services are expressly left outside the scope of it. Lastly, out of the presumption that the traditional copyright-territorialitybased business model of the audiovisual industry will inevitably have to adapt to the new paradigm in the way audiovisual content is consumed and distributed, this Master's thesis answers the research question by advocating for a threefold approach towards the geo-blocking issue. In other words, this contribution defends that an elimination of geo-blocking in the EU (and thus allowing cross-border access to online audiovisual content services) without harming the incentives of the audiovisual industry to produce and distribute content will only be feasible if the European Union adopts an incremental, cross-sectoral and proactive approach.
Geo-blocking practices commonly restrict cross-border sales of tangible goods as well as of electronically supplied services and electronically delivered content services in the EU. The Commission has therefore proposed a regulation which would prohibit traders from blocking access to their online interfaces to customers in another Member State or from automatically re-routing them to a different website for reasons related to the customers' nationality, place of residence or place of establishment. Foreign customers should be offered the same terms and conditions as local customers. However, audiovisual services would not be covered, with the Commission proposing to address them under the forthcoming copyright reform. While the proposal has been broadly welcomed, a number of specific issues have been raised by stakeholders and scholars.