EU Commission Targeting Apple’s Geo-Blocking Practices

The EU Commission is once again taking aim at Apple, this time over the company’s practice of geo-locking practices, especially in the context of its online services.

The EU restricts companies’ ability to geo-block services based on the country, since EU citizens can move freely from one country to another within the bloc. In the case of Apple, however, the Consumer Protection Cooperation (CPC) Network identified geo-blocking issues with the App Store, Apple Arcade, Music, iTunes Store, Books and Podcasts.

The CPC Network’s determination was led specifically by authorities in Belgium, Germany, and Ireland, with those authorities finding Apple limits customers in the following areas:

• Online access: 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, which is not allowed under EU’s anti-geo-blocking rules.
• Payment methods: 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.
• Downloading: Since 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. Consumers should be able to download apps offered in other EU/EEA countries when they travel to or temporarily stay in that country.

The EU says Apple has one month to reply to the CPC Network’s findings and propose a solution to the issue. If Apple refuses to cooperate, authorities may begin enforcement measures.

“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,” said Margrethe Vestager, Executive Vice-President for a Europe Fit for the Digital Age. “Preventing geo-blocking helps consumers access the goods and services they want across Europe and strengthens the functioning and integrity of our Single Market.”

“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,” added Věra Jourová, Vice-President for Values and Transparency. “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.”

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

Apple has run afoul of EU regulation repeatedly in recent years, with some of the company’s core practices under fire for being anti-competitive. The company’s issues within the EU have even led it to hold off on launching some of its newest tech—such as Apple Intelligence—within the bloc.

The Growing Challenges of International Business

Apple’s challenges illustrate the growing challenges many company’s face as they do business internationally. In recent years, jurisdictions around the world have begun cracking down on tech companies, forcing them to play nice with competitors and respect user data and rights.

Because measures vary wildly across jurisdictions, doing business internationally has become a veritable legal minefield, with companies required to make major concessions, or drastically change their products, from one region to another. Needless to say, these measures can significantly raise prices, especially if companies have to maintain multiple versions of their products.

Until countries that have traditionally been more lax with their regulation—such as the US—adopt similar measures as Europe and some Asian countries, companies will continue to deal with a patchwork of regulatory requirements.

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