What the New Decision on Geo-blocking Means for Consumers, Businesses, and the Economy

The recently adopted CEFTA decision on combating unfair online practices promises to make a significant impact on consumers, businesses, and economies across the region.

Stopping Unjustified Geo-blocking

The CEFTA Decision on the Prevention of Unjustified Geo-blocking is designed to end unfair restrictions and discrimination based on a customer’s location. Imagine wanting to buy a fantastic gadget online, only to be blocked because of where you live—CEFTA says, “No more!” This decision ensures that everyone in CEFTA can shop freely without unnecessary restrictions.

In CEFTA’s context, “geo-blocking” refers to blocking or limiting access to online goods, services, or content based on a user’s geographical location. For example, if you’re in Bosnia and Herzegovina and want to access a product on an Albanian website, geo-blocking might prevent you from doing so. The CEFTA decision now prohibits such practices, ensuring that consumers can access online services and make purchases across CEFTA Parties without discrimination.

How Geo-blocking Works

Geo-blocking can take various forms, including:

• IP Address Blocking: Detecting a user’s IP address to restrict access based on location.
• Location-Based Redirects: Redirecting users to region-specific sites with localized content and prices.
• Location-Specific Domain Names: Restricting access to certain domain names based on location.
• Payment Information: Denying access if the user’s payment information doesn’t match a specific location.
• Legal Agreements: Agreements that limit content distribution to specific locations.
• Licensing and Copyright Restrictions: Content limitations due to licensing and copyright agreements.

While geo-blocking can serve compliance and strategic purposes, it often raises concerns around discrimination and consumer choice. CEFTA’s new decision identifies and outlaws geo-blocking practices deemed unjustified.

When is Geo-blocking Justified?

While geo-blocking is generally discouraged, some exceptions remain. CEFTA’s rules exclude services related to copyright-protected content, such as streaming music and e-books. Audio-visual, financial, health, and social services are also excluded, as is geo-blocking used to combat illegal activities or content online.

Ending Unfair Geo-blocking and Discrimination

The CEFTA decision addresses unjustified geo-blocking practices that restrict access to goods and services within the region. It establishes common rules to prevent unfair treatment in online shopping, creating a level playing field across CEFTA.

Who Benefits?

• Consumers: Shoppers can enjoy more choices without facing location-based restrictions, providing fair access to goods and services.
• Businesses: Companies gain the opportunity to expand their customer base by tapping into new, previously restricted markets, driving sales and revenue.
• Economy: The decision fosters fair and transparent trade, benefiting the entire CEFTA economy as businesses grow, hire, and contribute to higher living standards.
• The Region: By aligning with EU geo-blocking rules, CEFTA brings the region closer to the European Union.

What’s Next?

With the Decision now adopted, businesses will need a period to adjust their practices, and governments will enforce these new rules. Once implemented, the Decision will enable CEFTA Parties to apply EU geo-blocking standards, supporting the EU Growth Plan for the Western Balkans and aligning the region with the EU.