What does geoblocking mean for an e-shop or website and how can it be resolved?

What is geoblocking and why is it prohibited?

Geoblocking is the restriction of consumers based on their

• current location
• residence
• nationality

In practice, this means that a seller violating this regulation through online services presented you with a modified offer of goods and services, their prices, shipping options, or payment methods based on at least one of the three parameters mentioned above.
It is the same as if a Czech and a German (or another EU resident) entered a physical store, and each paid a different price for the same product simply because one is Czech and the other is a foreigner from the EU. Just like in a physical store, internet users must have the same conditions when shopping within the European Union.
Geoblocking allowed sellers to tailor their business strategy for individual markets, which is prohibited by the EU.

When does geoblocking occur?

When a user is blocked or restricted from accessing a merchant's website for one of the three reasons mentioned above. And now a bit more illustratively.

• when you are automatically redirected to the Czech or another version upon entering a foreign website (e.g., from www.domain.com you are redirected to www.domain.com/cs without your consent)
• when the Czech version of the e-shop shows different prices than the German version based on information about your location, residence, or nationality
• when one version of the e-shop offers 3 payment options (cash, card, bank transfer) and another offers only transfer based again on information about you as a user

Who geoblocking applies to

• E-shops with multiple versions delivering goods to other member states
• Presentation websites that facilitate the sale of goods and services (typically, you can find an overview of stores or collaborating sellers on the website)

Who is (currently) not affected

• E-shops with a single version that operate only within one member state
• Presentation websites that serve as a business card without a direct or mediated goal to sell goods
• E-shops that offer downloads of copyrighted content, such as music, e-books, software, and online games, as well as services in sectors like transportation and audiovisual services – these are currently exempt from this regulation by the EU

How to resolve geoblocking

Every website owner exhibiting the behavior described above should take steps to eliminate geoblocking. A language version switch (whether in the form of flags or language abbreviations) must be accessible and visible from all pages of the website, allowing users to switch to another version at any time. If a merchant wants to direct users to their nearest language version, they can use a pop-up window offering to switch to another version of the website. However, users must actively consent to the redirection.

What will happen next?

In 2020, the first evaluation of the regulation's impact on the EU internal market is expected to take place. The evaluation will address, among other things, whether the new rules should apply to certain electronically provided services offering downloads of copyrighted content, as well as services in transportation or audiovisual sectors.