Online retailers could be banned from blocking purchases based on a consumer’s geographical location under a new proposal issued by the European Commission.


According to lawmakers, an increasing number of global retailers have started ‘geoblocking’ consumers so that web users can only access country-specific versions of their online stores. As a result, consumers in some countries are said to end up paying more for the same goods and services.

In eradicating this practice, big companies could ultimately be forced to offer one, universal platform for all continental users. But the ban would also impact location-specific services like rental companies, hotels and event sites.

New Geoblocking Rule

Officials were quick to point out in a statement that the new proposal would not apply to copyright-protected materials like e-books, music and games. That means streaming services like Spotify and Netflix (NFLX) would still presumably be free to offer starkly contrasting prices

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Source: Small Business Trends