EU says widespread use of
geoblocking may breach antitrust rules
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[September 15, 2016]
BRUSSELS (Reuters) - EU antitrust
regulators said on Thursday they may take action against online and
electronic retailers restricting cross-border sales within the bloc but
only on a case-by-case basis.
Following a year-long investigation into the sector, the European
Commission preliminary report showed that geoblocking, where
retailers prevent online shoppers in some countries buying cheaper
products or services abroad, is widespread, due in part to
agreements between retailers and content providers.
The so-called e-commerce sector inquiry is part of the European
Commission's campaign to overhaul the 28-country bloc's digital
market in a bid to boost growth and catch up with the United States
and Asia.
The EU executive also found manufacturers increasingly use selective
distribution and contractual sales restrictions, such as price
restrictions and curbs on online sales, to better control their
products.
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"These practices can prevent European consumers from reaping the
full benefits of e-commerce in terms of greater choice and lower
prices," Competition Commissioner Margrethe Vestager said in a
statement.
The initial findings by the EU antitrust enforcer could lay the
groundwork for cases against some retailers. A final report is due
in the first quarter of 2017.
EU antitrust scrutiny of the pharmaceutical, energy and financial
services industries over the past decade prompted investigations
into companies in all three sectors.
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![](../images/091516pics/busine1.jpg)
European Commissioner for Violation of EU Treaties Margrethe
Vestager addresses the European Parliament in Strasbourg, France,
during a debate on Ireland's tax dealings with Apple Inc, September
14, 2016. REUTERS/Vincent Kessler
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While about half of EU consumers shopped online in 2014, only 15 percent of them
bought a product from another EU country because of language barriers, different
laws as well as anti-competitive behavior, according to Commission data.
(Reporting by Alissa de Carbonnel and Foo Yun Chee in Brussels; Editing by Jan
Strupczewski)
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