Written answers

Tuesday, 19 July 2016

Department of Jobs, Enterprise and Innovation

EU Regulations

Photo of Alan KellyAlan Kelly (Tipperary, Labour)
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892. To ask the Minister for Jobs, Enterprise and Innovation if she is aware of the cost to consumers of geo-blocking by companies providing online services and goods; if she supports the EU Commission proposals to prevent geo-blocking; and if she will make a statement on the matter. [22671/16]

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Geo-blocking refers to practises used by online sellers that result in the denial of access to websites from other States. It also includes situations where access to a website is granted, but the customer from abroad is prevented from accessing the product or service in question or being asked to pay with a debit or credit card from a certain country.

Some forms of geo-blocking are justified. However, many are not justified. The proposed EU Regulation on geo-blocking aims to provide for more opportunities to customers: it addresses the problem of customers not being able to buy products and services from traders located in a different Member State, or being discriminated in accessing the best prices or sales conditions compared to nationals or residents.

While the impact assessment accompanying the legislative proposal from the EU Commission does not put a figure on the likely scale of consumer detriment incurred by European consumers on foot of unjustified geo-blocking measures used by traders, survey data collected in 2014 shows that 19% of cross border online shoppers did experience restrictions at one stage or another when attempting to make a purchase. Similarly, 2015 Eurostat figures show that 10% of cross border online shoppers were restricted in making a purchase based on their nationality or place of residence in the previous 12 months.

More generally, the Digital Single Market (DSM) Strategy for Europe published by the EU Commission in 2015 states that the economic potential of the DSM for consumers and businesses is currently under-exploited. The EU Commission estimated that consumer welfare gains from greater e-commerce activity in goods in an integrated DSM could reach over €200 billion per annum with two-thirds of these gains coming from increased online choice.

With regards to the EU Commission proposal on addressing unjustified geo-blocking, the Government fully supports any measure that enhances consumer welfare, without any disproportionate additional burden on business, in order to facilitate the achievement of a fully-functioning integrated Digital Single Market.

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