European Commission urges Apple to stop illegal geo-blocking practices

The Consumer Protection Cooperation Network and the European Commission have notified Apple of several potentially illegal geo-blocking practices on several Apple Media Services, including the App Store, Apple Arcade, Music, iTunes Store, Books and Podcasts.

Back in 2018, the EU adopted legislation to ensure European consumers got access to goods and services in all app stores that are offered in the European Union, without unjust discrimination. This was called the Geo-blocking Regulation.

Six months after the adoption of the legislation, the European Commission found that the newly implemented regulation had effectively decreased geo-blocking practices.

However, the study showed other barriers that continue to prevent seamless cross-border access to services and goods. These included diverging national rules, certain taxation requirements, costs of parcel delivery services, and practices of multinational traders to arrange for the distribution of goods and services at national level.

As soon as the report came out, Google promised to clarify to consumers how to browse different country versions of its Google Play Store, and to inform developers about their obligations under the Geo-blocking Regulation to make their apps accessible in all of the EU.

Apple on the other hand has its work cut out. The Consumer Protection Cooperation Network of national consumer authorities and the European Commission have found a number of limitations on multiple Apple Media Services which “unlawfully discriminate” European consumers.

For example, in the app versions of these services consumers are only allowed to access the interface that was designed for the country where they have registered their Apple account. Trying to change this leads to ‘significant challenges’, which is not allowed under the EU’s Geo-blocking Regulation.

In addition, when buying products or services on Apple Media Services, consumers are only allowed to use payment methods issued in the country where they have registered their Apple account.

Lastly, consumers should be allowed to download apps that are available in other EU countries. But since Apple doesn’t allow consumers to access other versions of the App Store, they’re not able to download apps that are offered in other European countries.

“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,” Margrethe Vestager, Executive Vice President for a Europe Fit for the Digital Age, says in a statement.

Didier Reynders, Commissioner for Justice, emphasizes that discrimination based on nationality or place of residence is unacceptable 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 traveling around the EU. The Commission urges Apple to bring its practices in line with EU rules against the unjustified geo-blocking of consumers,” he says.

Apple has one month to respond to the Consumer Protection Cooperation Network’s and European Commission’s findings and come up with solutions that will resolve the illegal geo-blocking practices. If Apple fails to address these challenges, national authorities can take enforcement measures to make sure the American tech company complies with the EU’s regulations.