Geoblocking Regulation Endorsed: What to Expect


European Commission endorses the Geoblocking Regulation. What should you, as an online merchant, expect from this? Just read this article and you’ll get to know what to expect. Also, you’ll learn how to open a high-risk merchant account for your business.

Geoblocking Regulation

On 27 February 2018, the European Council adopted a new regulation known as the “Geoblocking Regulation.”

After Parliament approved the Regulation, the European Council voted to adopt it. This regulation bans eCommerce merchants in EU member states from charging different prices or even making products unavailable to consumers in certain other countries within the EU.

Previously, merchants used the blocking of transactions from certain countries as a tool to reduce fraud. However, with antifraud technology improving, this practice has recently lost its effectiveness.

What is Geoblocking? What to expect from it?

  • EU customer’s access to a business’s website, app, or other online channel will be blocked/limited based on their location

  • The customer will automatically be rerouted to a “local” version of the business’s website, which may offer different content, products, services, prices, payment conditions, and more

The Geoblocking Regulation will come into effect on 22 March 2018. However, most of it won’t apply in the Member States until 3 December 2018. Within 2 years after the entry into effect of the new rules, the Commission will implement the 1st evaluation of the impact that rules are going to have on the internal market.

Justified and Unjustified Reasons of the Geoblocking Regulation

Some reasons might be justified for traders like the need to register at the tax authority in the country of destination, higher shipping costs, or costs driven by the application of foreign consumer law.

When it comes to the discrimination between EU customers in order to segment markets along national borders so to boost profits to the detriment of foreign customers, it’s viewed as unjustified.

With all this in mind, merchants in the UK should look for a reputable processor if they want to apply for merchant services. For this, you just need to turn to a payment expert in the UK that can offer you the best merchant services, including a high-risk merchant account, for your business.

A respectable payment specialist will offer you free consultations, the most competitive rates, fees, as well as the most honest snapshot of the company at the time of writing.

Right now, it’s not clear how the Geoblocking Regulation is going to operate as between the UK and the EU after Brexit. The reason is that much will depend on any bilateral agreement or trade deal between the UK and the rest of the EU. However, businesses in the UK will have to comply with the Geoblocking Regulation for at least a certain period of time.

Author Bio: Electronic payments expert Taylor Cole is a passionate entrepreneur who also enjoys to write, play guitar and camp. BestPaymentProviders is UK’s best high risk merchant account company, serving both traditional and high-risk merchants.

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