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Image header Agence Europe
Europe Daily Bulletin No. 11534
SECTORAL POLICIES / (ae) digital

Commission suggestions for ending geo-blocking

Brussels, 18/04/2016 (Agence Europe) - The contents of the legislative package on e-commerce are taking shape and the package is due to be presented at the end of May. Overall, the European Commission is expected to ban geo-blocking, a practice operated by companies to prevent consumers living in other member states from accessing their products. The European Commission, will, however, allow them to apply different delivery costs.

The e-commerce package is one of 16 areas making up the Single Digital Market Strategy. It is expected to be based on three different texts: the text on unjustified geo-blocking, updating the directive on cooperation between the authorities responsible for consumers and a third on parcel deliveries. During a press briefing on Friday 15 April, Commissioner Andrus Ansip pointed out that he supported the principle of ensuring that sales were carried out in the same way as they are at home. In other words, companies should sell their products outside of their national borders without discrimination, irrespective of whether purchasers are in the member state where they are established or in another EU country. On the other hand, he did indicate that he had no intention of harmonising delivery costs in Europe.

According to the information we have received, the Commission is keen on increasing transparency and competition to avoid cost being five more expensive online when purchasing from a company based in another member state, which is currently the case. A Commission representative explained to EUROPE that "We will be launching measures in spring 2016 to improve price transparency and regulatory monitoring of the parcels markets. We believe that transparency and competition will reduce parcel delivery prices but we will review the situation in two years time". A priori, the Commission is planning to introduce a website for comparing prices and improving the application of principles on accessibility and orientation based on costs and a public price list for parcel deliveries (contained in the 2008/6/EEC directive on postal services).

It should be pointed out that this legislative package would only contain provisions for banning geo-blocking and tangible goods. It will not be tackling the blocking of virtual content. During the briefing, Commissioner Ansip explained to EUROPE that "When the Commission was talking about putting an end to geo-blocking, it was particularly referring to tangible goods but for me, yes, I believe that we also need to put a stop to the blocking of virtual content". He then pointed out that "There was a whole range of preliminary conditions that needed to be met before getting to this kind of situation, such as, for example, the situation involving VAT and contractual rules". It should also be pointed out that the Commission is expected to put forward a number of measures in November for reducing administrative charges on companies that arise from the disparity created by the different VAT systems. (Original version in French by Sophie Petitjean)

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