Geo-blocking

What it means

Geo-blocking means restricting access to an online store, or applying different prices or terms, based on which EU country a customer is from or where their card was issued. An EU regulation bans it for goods and most services in order to strengthen the single market.

A trader may not redirect a customer from another country to a different language or country version of the site without consent, block their access, or refuse a card payment just because the card was issued in another EU country, if it otherwise accepts that type of card.

The ban does not mean an obligation to deliver to every country. A shop may decide where it ships, but a customer from another country must be able to buy on the same terms as locals and collect the goods or have them delivered to an address in the area served.

How it works in practice

The regulation identifies three situations in which traders must sell without discrimination: goods delivered to the area served or collected, electronically supplied services such as cloud or web hosting, and services received on site, such as accommodation, car hire or tickets.

In cross-border e-commerce, it helps to state clearly where the shop delivers and on what terms. Different prices on different language versions are allowed as long as the customer can freely choose which version to use.

Selling to customers in other countries also has tax consequences. Above the distance selling threshold, VAT is due in the customer's country, which OSS simplifies, and when selling to consumers the consumer protection rules of their country also matter.

What to watch out for

The ban does not yet apply to audiovisual services and some copyright-protected content, such as film streaming or e-books, where licences may restrict territory. For digital content, check whether the exemption applies.

Breaches of the geo-blocking ban can be handled by the consumer protection authority, which can impose fines. Common problems are automatic redirects based on IP address and refusals of foreign cards configured in the payment gateway without the trader's knowledge.