Geo-blocking restricting EU consumers’ access to online goods, report finds

Consumers face unjustified obstacles when accessing goods and services online because of geo-blocking practices which discriminate on the basis of where you make the purchase, a report from the European Court of Auditors (ECA) has found.

So-called geo-blocking was supposed to be curtailed by a 2018 regulation designed to stop businesses from discriminating against customers in the EU Single Market based on their nationality or place of residence.

However, the ECA’s findings highlight that consumers across Europe are still facing hurdles when shopping online, as enforcement of the rules has been inconsistent across member states. 

The report points to gaps in the way the regulation is being enforced. Penalties for breaking the rules vary widely across the EU, from as little as €26 in some countries to fines reaching €5 million in others. In some cases, traders even face criminal liability, leading to significant disparities in the consequences for non-compliance. Such inconsistencies are leaving consumers without the protection the regulation was intended to provide, according to the ECA report.

Ildikó Gáll-Pelcz, the ECA member responsible for the audit, warned that geo-blocking is still “limiting consumers’ opportunities and choices” and creating frustration among customers.

The auditors say the practical implementation of the rules is falling short, with dispute resolution proving tricky for affected businesses, and many consumers and traders unaware of support available at EU and national levels. 

Exemptions from the regulation for certain sectors such as audiovisual services - which includes online streaming platforms and TV distribution protected by copyright - is also proving contentious. The European Commission has been in discussions with industry to explore ways of improving access to such content, but the ECA report calls for more decisive action. With the regulation set for review in 2025, the auditors recommend that policymakers consider expanding its scope to cover these services. 

Commission to take report into account

Commission Spokesperson Thomas Regnier welcomed the ECA Report, which he said "confirms the positive impact of that policy while suggesting areas for further improvements and consideration". 

The Commission said in response that the Geo-blocking Regulation "strikes a delicate balance between consumer access and traders’ rights to manage their cross-border operations".  

Complex copyright practices present challenges to wider content availability in the audiovisual sector, the Commission said, underlining "ongoing efforts" to refine the framework in that sector.  

The Commission has signalled that it will consider stronger enforcement mechanisms, including a potential legislative initiative to ensure more uniform consumer protection across the EU.  

"The Commission will take into account the findings of the Court of Auditors in its activities related to that Regulation, including in the forthcoming evaluation of the Regulation," said Regnier.