EU cracks down on Apple over alleged prohibited geo-blocking practices

EU cracks down on Apple over alleged prohibited geo-blocking practices

Pictured: An Apple store in Hong Kong, China. (Credit: saiko3p - stock.adobe.com)

Apple has been ordered to bring its geo-blocking practices in line with EU consumer law.

The Consumer Protection Cooperation (CPC) Network of national consumer authorities and the European Commission have notified Apple of several potentially prohibited geo-blocking practices that the CPC Network has identified on certain Apple Media Services, namely the App Store, Apple Arcade, Music, iTunes Store, Books and Podcasts.

The CPC Network’s action against Apple is being led by the competent national authorities of Belgium (Directorate General for Economic Inspection), Germany (Bundesnetzagentur) and Ireland (Competition and Consumer Protection Commission), under the co-ordination of the European Commission.

According to the CPC Network’s assessment, a number of Apple Media Services unlawfully discriminate European consumers based on their place of residence.

Apple Media Services have a different interface for different countries in the EU/EEA. In the app version of these services, consumers are only allowed to access the interface made for the country where they have registered their Apple account and face significant challenges when attempting to change this.

When making paid purchases on Apple Media Services, consumers are only allowed to use means of payment (such as a credit/debit card) issued in the country where they registered their Apple account.

Since the App Store does not allow consumers to access the version of another EU/EEA country, consumers are not allowed to download the apps offered in other countries.

The CPC Network believes these practices breach the EU’s Geo-blocking Regulation and Services Directive.

The Geo-blocking Regulation prohibits unjustified discrimination between EU customers on the basis of their nationality, residence, or place of establishment when they want to buy goods and services from traders located in a different member state.

The Services Directive requires that general conditions of access to a service do not contain discriminatory provisions relating to the nationality or place of residence of the service recipient, unless directly justified by objective criteria.

Apple now has one month to reply to the CPC Network’s findings and propose commitments on how they will address the identified geo-blocking practices.

Depending on Apple’s reply, the CPC Network may enter into a dialogue with the company. If Apple fails to address the concerns raised by the CPC Network, national authorities can take enforcement measures to ensure compliance.

Margrethe Vestager, the European Commission’s executive vice-president for a Europe Fit for the Digital Age, said: “We are stepping up the fight against geo-blocking.

“No company, big or small, should unjustly discriminate customers based on their nationality, place of residence or place of establishment. Preventing geo-blocking helps consumers access the goods and services they want across Europe and strengthens the functioning and integrity of our single market.”

VÄ›ra Jourová, vice-president for values and transparency, said: “European consumers have equal rights around the EU, so we are asking Apple to bring down barriers created by geo-blocking and to align its practices with EU law.

“Consumers across the EU should have equal access to goods and services. Discrimination of them by companies based on the place of residence or nationality is unacceptable.”

Didier Reynders, commissioner for justice, added: “The discrimination of consumers based on their nationality or place of residence is against Union law, therefore unacceptable.

“This is why we have rules prohibiting unjustified geo-blocking in the EU. Consumers must be able to reap the full benefits of the Single Market and should not face any obstacles while using a specific service and travelling around the EU.

“The Commission urges Apple to bring its practices in line with EU rules against the unjustified geo-blocking of consumers.”

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