EC targets CE, video game markets over geo-blocking

Nieuws Breedband Europa 2 FEB 2017
EC targets CE, video game markets over geo-blocking
The European Commission announced an investigation into whether companies in the consumer electronics, video game and hotel sectors are offering different prices and sales terms to customers depending on which EU country they live in. In principle, the single EU market should mean consumers can buy the same products across the 28 states at the same prices and conditions. However, the EU's competition arm has found that some offers may not be available to everyone, due to the buyer's country of origin. 

Specifically, the three investigations started by the Commission target retail price restrictions, discrimination on the basis of location and geo-blocking. The preliminary results of the Commission's competition sector inquiry on e-commerce show that the use of these restrictions is widespread throughout the EU.

In the CE sector, it's looking at whether Asus, Denon & Marantz, Philips and Pioneer have breached EU competition rules by restricting the ability of online retailers to set their own prices for widely used consumer electronics products such as household appliances, notebooks and hi-fi products.

It's also investigating agreements between Valve, owner of the Steam game distribution platform, and five PC video game publishers, Bandai Namco, Capcom, Focus Home, Koch Media and ZeniMax. The investigation concerns geo-blocking practices, where companies prevent consumers from purchasing PC video games because of the consumer's location or country of residence. 

In the hotel sector, the Commission is looking at agreements between the largest European tour operators (Kuoni, REWE, Thomas Cook, TUI) and hotels (Melia Hotels). The agreements may contain clauses that discriminate between customers, based on their nationality or country of residence – as a result customers would not be able to see the full hotel availability or book hotel rooms at the best prices. 

Last year the Commission proposed new regulations to limit the use of geoblocking, as part of a broader effort to stimulate cross-border e-commerce in the EU. Approved by the Council in November last year, the rules would notably prohibit e-commerce shops from blocking or limiting customers' access to their website for reasons of nationality or place of residence, as well as limit discrimination in pricing, delivery and payment terms based on residence. The rules are subject to agreement with the European Parliament before becoming final. 

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