Consumers no longer restricted from accessing websites based on their location as new EU geo-blocking regulations come into effect

A new European Geo-blocking Regulation takes effect for Irish businesses and consumers. Geo-blocking is the practice of using technology to restrict access to online cross-border sales based upon the user’s geographical location. The Geo-Blocking Regulation will ensure that all consumers in the EU will now have the same rights to access a trader’s goods and services on the same terms, irrespective of their location.

Commenting on the commencement of the new Regulation, Minister of State for Trade, Employment, Business, EU Digital Single Market and Data Protection, Pat Breen, said, “The Geo-blocking Regulation represents another important gain for Irish consumers from Ireland’s implementation of the Digital Single Market Strategy. It creates a clear, transparent and stable legal environment for online Business-to-Consumer service providers and their business users. With the commencement of the Geo-blocking Regulation Irish consumers will now enjoy increased price transparency as they will be able to compare offerings across the entire EU to access the best prices and sales conditions. It also provides Member States with the necessary structures, powers and procedures to ensure that national enforcement authorities can deal effectively with widespread infringements of consumer protection laws which carry the risk of harming consumer welfare on a wide scale.”

The Geo-blocking Regulation applies to transactions which have a cross-border element. From December 3rd 2018 the new rules mean that the following:

· EU-based businesses are no longer allowed to block or limit a customer from accessing their website based on their location and they cannot automatically redirect a customer to a different online interface without their express consent.

· In certain circumstances businesses must provide consumers with the same access and possibility to acquire goods and services as local customers. In terms of setting prices, this means that a trader can have different prices on websites aimed at different territories, but customers must not be confined to buying from the website aimed at their location.

· While traders are free to accept whatever payment method they wish, the Geo-blocking Regulation prohibits them from treating those payment methods differently depending on the location of the customer.

If a consumer has a dispute with a business under the Regulation, the European Consumer Centre Ireland can provide information to consumers about their rights, help them settle a dispute with a trader located in another Member State or explain the next steps a consumer can take. From a compliance perspective, the Competition and Consumer Protection Commission (CCPC) has responsibility for enforcement and monitoring compliance with the Regulations in business to consumer relationships.

Speaking today, Fergal O’Leary, Member of the Competition and Consumer Protection Commission (CCPC) said, “It is important that businesses who sell online within the EU understand their obligations under the Geo-blocking Regulation and that businesses if they haven’t done so already now undertake a review of their trading terms and digital platforms to ensure compliance. Our initial focus is to help businesses understand their obligations. We want to make it as easy as possible and so, to help businesses understand these obligations, we have developed a new guide which provides an overview of the different requirements under the Geo-blocking Regulation. Our website ccpc.ie provides these guidelines and a range of other supports for businesses.”