💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

EU says widespread use of geoblocking may breach antitrust rules

Published 09/15/2016, 07:31 AM
© Reuters. European Commissioner for Violation of EU Treaties Vestager addresses the European Parliament in Strasbourg, France, during a debate on Ireland's tax dealings with Apple Inc

BRUSSELS (Reuters) - EU antitrust regulators said on Thursday they may take action against online and electronic retailers restricting cross-border sales within the bloc but only on a case-by-case basis.

Following a year-long investigation into the sector, the European Commission preliminary report showed that geoblocking, where retailers prevent online shoppers in some countries buying cheaper products or services abroad, is widespread, due in part to agreements between retailers and content providers.

The so-called e-commerce sector inquiry is part of the European Commission's campaign to overhaul the 28-country bloc's digital market in a bid to boost growth and catch up with the United States and Asia.

The EU executive also found manufacturers increasingly use selective distribution and contractual sales restrictions, such as price restrictions and curbs on online sales, to better control their products.

"These practices can prevent European consumers from reaping the full benefits of e-commerce in terms of greater choice and lower prices," Competition Commissioner Margrethe Vestager said in a statement.

The initial findings by the EU antitrust enforcer could lay the groundwork for cases against some retailers. A final report is due in the first quarter of 2017.

EU antitrust scrutiny of the pharmaceutical, energy and financial services industries over the past decade prompted investigations into companies in all three sectors.

© Reuters. European Commissioner for Violation of EU Treaties Vestager addresses the European Parliament in Strasbourg, France, during a debate on Ireland's tax dealings with Apple Inc

While about half of EU consumers shopped online in 2014, only 15 percent of them bought a product from another EU country because of language barriers, different laws as well as anti-competitive behavior, according to Commission data.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.