Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on addressing geo-blocking and other forms of discrimination based on customers' nationality, place of residence or place of establishment within the internal market and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC
Date: 2016-05-25
Institutions: Directorate-General for Communications Networks, Content and Technology, European Commission
Subjects: consumer protection, discrimination on the basis of nationality, electronic commerce, equal treatment, establishment, free movement of goods, freedom to provide services, goods and services, residence, single market

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 25.5.2016  COM(2016) 289 final 2016/0152 (COD)   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on addressing geo-blocking and other forms of discrimination based on customers' nationality, place of residence or place of establishment within the internal market and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC (Text with EEA relevance) {SWD(2016) 173 final} {SWD(2016) 174 final}  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

• 
The  Digital  Single  Market  Strategy1  adopted  in  May  2015  and  the  Single  Market  Strategy2 
adopted in October 2015 announced legislative action to address unjustified geo-blocking and 
comprehensively  fight  discrimination  based  on  nationality  or  place  of  residence  or 
establishment  (in  this  explanatory  memorandum  for  ease  of  reference  all  referred  to  as 
"residence").  

The general objective of this proposal is to give customers better access to goods and services 
in  the  Single  Market  by  preventing  direct  and  indirect  discrimination  by  traders  artificially 
segmenting the market based on customers' residence. Customers experience such differences 
in treatment when purchasing online, but also when travelling to other Member States to buy 
goods or services.  

Despite the implementation of the non-discrimination principle in Article 20(2) of Directive 
2006/123/EC3  ("Services  Directive"),  customers  still  face  refusals  to  sell  and  different 
conditions, when buying goods or services across borders. This is mainly due to uncertainty 
over  what  constitutes  objective  criteria  that  justify  differences  in  the  way  traders  treat 
customers. In order to remedy this problem, traders and customers should have more clarity 
about the situations in which differences in treatment based on residence are not justifiable.  

This proposal prohibits the blocking of access to websites and other online interfaces and the 
rerouting  of  customers  from  one  country  version  to  another.  It  furthermore  prohibits 
discrimination against customers in four specific cases of the sale of goods and services and 
does not allow the circumventing of such a ban on discrimination in passive sales agreements. 
Both  consumers  and  businesses  as  end  users  of  goods  or  services  are  affected  by  such 
practices  and  should  therefore  benefit  from  the  rules  set  out  in  this  proposal.  Transactions 
where goods or services are purchased by a business for resale should, however, be excluded 
in  order  to  allow  traders  to  set  up  their  distribution  systems  in  compliance  with  European 
competition law.  

This  proposal  does  not  address  pricing  as  such  and  traders  consequently  remain  free  to  set 
their  prices  in  a  non-discriminatory  manner.  Nor  does  it  address  dynamic  pricing,  where 
traders adapt their offers over time, depending on a number of factors  that are not linked to 
customers' residence.  

Consistency with existing policy provisions in the policy area 

• 
The  country  of  origin  principle  under  Directive  2000/31/EC4  ("the  e-Commerce  Directive") 
has  enabled  traders  providing  information  society  services  to  operate  cross-border  and  to 
provide  their  services  on  the  basis  of  rules  applicable  in  their  country  of  establishment. 
Furthermore, the Services Directive includes rights for service recipients and seeks to ensure, 

1 
2 
3 

4 

COM (2015) 192 final. 
COM (2015) 550 final. 
Directive  2006/123/EC  of  the  European  Parliament  and  of  the  Council  of  12  December  2006  on 
services in the internal market. 
Directive 2000/31/EC of the European Parliament and of the Council of 8 June 2000 on certain legal 
aspects of information society services, in particular electronic commerce, in the Internal Market. 

EN 

2 

   EN 

                                                 
under  Article  20  that  service  providers  established  in  the  Union  do  not  treat  customers 
differently on the basis of their nationality or place of residence, either directly or indirectly. 
However,  Article  20  does  not  sufficiently  address  discrimination  of  customers  and  has  not 
reduced  the  legal  uncertainty.  As  a  result,  it  has  been  difficult  to  enforce  the  non-
discrimination rule in practice. This proposal ensures, for the avoidance of any doubts, that in 
the  case  of  conflict  with  Article  20(2)  of  the  Services  Directive,  the  provisions  of  this 
Regulation will prevail. 

There are also other provisions banning discrimination, including through denial of access to 
websites or rerouting, for reasons related to residence, e.g. in the transport sector. 5  

Regarding  non-discrimination  in  the  use  of  payment  means,  Regulation  (EU)  No  260/2012 
already prohibits traders from requiring bank accounts to be from a certain Member State for 
a  payment  to  be  made.  This  principle  does  not  exist  for  other  payment  means.  Regulation 
(EU)  2015/71  facilitated  the  use  of  credit  cards  by  capping  interchange  fees  for  card-based 
payments  transactions. Directive (EU)  2015/23666  also  paved  the  way for  a  fully  integrated 
market  for  retail  payments  in  the  EU.  This  Regulation  goes  a  step  further  by  preventing 
traders  from  applying  different  payment  conditions  based  on  the  customer's  residence.  It  is 
important to remember, however, that traders are free to decide which means of payment they 
accept vis-à-vis local and foreign customers.  

The proposal is compatible with existing Union law on applicable law and jurisdiction7. 

• 

Consistency with other Union policies 

This  proposal  complements  other  initiatives  under  the  Digital  Single  Market  and  Single 
Market strategies and aims to create the right conditions for improved access to services for 
consumers and businesses across the Union.  

These initiatives include the proposals for a 'Directive on certain aspects concerning contracts 
for the supply of digital content'8 and for a 'Directive on certain aspects concerning contracts 
for the online and other distance sales of goods'9. These proposals are aimed at achieving full 
harmonisation in the areas covered. Once adopted, they will further reduce differences in the 
consumer  protection  legislation  of  Member  States,  especially  in  relation  to  remedies 
consumers are entitled to in the case of defective goods or digital content. 

5 

6 

7 

8 

9 

Article 1(a) and Article 4(2) of both Regulation (EU) No 181/2011 concerning the rights of passengers 
in  bus  and  coach  transport  and  Regulation  (EU)  No  1177/2010  concerning  the  rights  of  passengers 
when by sea and inland waterway regulate the principle of non-discrimination. Article 23(2) and 16(1) 
of  Regulation  (EC)  No  1008/2008  on  common  rules  for  the  operation  of  air  services  refer  to  non-
discrimination in air transport. 
Directive  (EU)  2015/2366  of  the  European  Parliament  and  of  the  Council  of  25    November  2015  on 
payment  services  in  the  internal  market,  amending  Directives  2002/65/EC,  2009/110/EC  and 
2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC. 
Regulation (EU) No 1215/2012 of the European Parliament and of the Council of 12 December 2012 on 
jurisdiction  and  the  recognition  and  enforcement  of  judgments  in  civil  and  commercial  matters  and 
Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the 
law applicable to contractual obligations (Rome I). 
COM(2015)  634  final,  Proposal  for  a  Directive  of  the  European  Parliament  and  of  the  Council  on 
certain aspects concerning contracts for the supply of digital content. 
COM(2015)  635  final,  Proposal  for  a  Directive  of  the  European  Parliament  and  of  the  Council  on 
certain aspects concerning contracts for the online and other distance sales of goods. 

EN 

3 

   EN 

                                                 
Furthermore, the proposal for a "Regulation on cross-border parcel delivery services" aims to 
enhance  price  transparency  and  regulatory  oversight  in  that  area.  Consumers  and  small 
businesses  report  that  problems  with  parcel  delivery  services,  in  particular  high  prices, 
prevent them from selling more to or buying more from other  Member States. The proposal 
for a revised "Regulation on Consumer Protection Cooperation" aims to improve co-operation 
between  national  consumer  protection  authorities  and  provide  a  stronger  cross-border 
enforcement mechanism for consumer claims. Both of these initiatives are also scheduled for 
publication on 25 May 2016. The initiative on extending the Single Electronic Mechanism for 
VAT registration seeks to further simplify cross-border trade by reducing the administrative 
burden of VAT registration and payment on traders. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  proposal  is  based  on  Article  114  TFEU.  This  Article  confers  on  the  EU  the  power  to 
adopt  measures  which  have  as  their  object  the  abolishment  of  the  barriers  to  the  free 
movement  of  inter  alia  goods  and  services.  Efforts  made  to  abolish  such  barriers  can  be 
neutralised  by  obstacles  raised  by  private  parties,  which  segment  the  internal  market  along 
national  borders.  That  is  all  the  more  problematic  in  the  context  of  the  internal  market  in  a 
situation where the relevant laws of the Member States are insufficiently clear, uniform and 
effective to combat such obstacles. The proposal therefore addresses practices which hamper 
the free movement of goods and services within the internal market. 

• 

Subsidiarity (for non-exclusive competence)  

Access  to  goods  and  services  on  a non-discriminatory  basis  within  the internal  market  is  in 
essence a cross-border issue. EU intervention is necessary to prevent discrimination based on 
residence in cross-border commercial transactions. Legislative intervention by Member States 
is  not  sufficient  to  ensure  non-discrimination  in  cross-border  situations.  In  terms  of 
effectiveness,  only  an  EU  intervention  can  ensure  that  conditions  for  customers’  access  to 
goods and services do not vary across the Union. EU action will ensure greater legal certainty 
by clarifying the situations in which different treatment on the basis of residence is deemed 
discriminatory and therefore prohibited. 

• 

Proportionality 

The proposal aims to facilitate access to goods and services across the Union and creates, in 
particular,  targeted  obligations  for  traders  not  to  discriminate  between  customers  based  on 
residence in specific circumstances. These obligations do not extend beyond what is necessary 
to solve the problems identified and are limited to the situations set out in the proposal.  The 
proposal  also  increases  legal  certainty  for  traders  by  clarifying  the  existing  obligations  and 
specifying when customers should be treated equally in cross-border purchases. Moreover, the 
proposal  does  not  impose  on  traders  any  disproportionate  costs.  Costs  emerging  from  the 
proposal consist mostly of one-off adaption costs. 

• 

Choice of instrument 

While  a  non-binding  instrument  such  as  a  recommendation  or  guidelines  could  support 
market developments in this area, the effectiveness of such instrument is expected to be very 

EN 

4 

   EN 

limited. The Commission guidelines10 on the application of Article 20(2) Service Directive of 
8  June  2012  provide  clarification  also  in  specific  situations,  such  as  those  covered  by  this 
proposal. However, Member States have not adapted national laws to provide more concrete 
rights to customers or stepped up enforcement, nor have traders altered their practice.  

For this reason, only a legislative instrument can effectively address the problems identified. 
A Regulation is preferred, as it is directly applicable in Member States, establishes the same 
level of obligations for private parties, and enables the uniform application of rules on non-
discrimination based on residence across all Member States. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

A large public consultation was conducted from 24 September to 28 December 2015. Views 
from consumers,  businesses,  associations and Member States  were sought.  433 replies were 
received. The results of the public consultation were published and are also contained in the 
Impact  Assessment.  Furthermore,  in  early  2015,  the  Commission  had  extensive  discussions 
with  stakeholders  (consumers,  businesses,  consumer  and  business  associations  and  national 
authorities), including through stakeholders workshops, to assess various possibilities for EU 
intervention  and  their  impact.  On  18  February  2016,  the  Commission  held  a  workshop  in 
Amsterdam to discuss the outcome of the public consultation and possible ways forward. 

The  vast  majority  of  consumers  experienced  geo-blocking  or  other  geographically-based 
restrictions when shopping in another EU country. The goods and services most affected by 
geo-blocking  are  clothing,  footwear  and  accessories,  physical  media  (books),  computer 
hardware  and  electronics,  airplane  tickets,  car  rental,  digital  content  such  as  streaming 
services,  computer  games  and  software,  e-books  and  MP3s.  A  majority  of  consumer  and 
businesses consider that traders should inform customers about sales restrictions. Consumers 
expressed  support  for  a  policy  option  requiring  traders  to  accept  cross-  border  commercial 
transactions,  however  without  an  obligation  for  them  to  deliver.  The  majority  of  businesses 
oppose an obligation to sell and deliver throughout the EU and emphasize the importance of 
tailoring prices on different national markets, highlighting the need to respect their economic 
and contractual freedom. A large majority of all respondent groups agree that enforcement of 
rules and information requirements should be improved. 11 

• 

Collection and use of expertise 

The  Commission  launched  a  large  mystery  shopping  survey,  which  analysed  approximately 
10,500  websites  in  the  EU  and  modelled  typical  cross-border  shopping  situations.  A 
Eurobarometer survey from 2016 focusing on business-to-business relations revealed that, as 
end  users  of  products  and  services,  companies  face  restrictions  similar  to  those  faced  by 
consumers.  The  Commission  has  analysed  a  large  number  of  complaints  relating  to  cross-
border shopping and conducted an evaluation of Article 20 of the Services Directive. In May 
2015,  the  Commission  launched  a  competition  inquiry  into  the  e-commerce  sector,  and 

10 

11 

SWD(2012) 146 final, Commission Staff Working Document with a view to establishing guidance on 
the  application  of  Article  20(2)  of  Directive  2006/123/EC  on  services  in  the  internal  market  ('the 
Services Directive') 
Synopsis  report  of 
market/en/news/full-report-results-public-consultation-geoblocking 

the  public  consultation  published  here:  https://ec.europa.eu/digital-single-

EN 

5 

   EN 

                                                 
reported  its  initial  findings  on  geo-blocking  in  March  2016.12  The  Commission  has  also 
discussed  this  initiative  with  Member  States  in  expert  groups  on  the  Services  and  the  e-
Commerce Directives. 

Impact assessment 

• 
An impact assessment was carried out for this proposal13. On 21 April 2016, the Regulatory 
Scrutiny Board issued a positive opinion to the resubmitted impact assessment. The comments 
of the RSB are taken on board in the final Impact Assessment. 

The final impact assessment examines five scenarios and comes to the following conclusions: 
The  option  concerning  increasing  increase  transparency  (option  1)  was  considered,  but  will 
not achieve the objective on its own. Increased transparency plus a ban on blocking website 
access to website (option 2), combined with the consent-based solution banning of automatic 
rerouting was considered advantageous but it would address only a small part of the problem. 
The preferred option (option 3) is to combine these two elements with the definition of certain 
specific  situations  in  which  geo-discrimination  cannot  be  justified  (for  goods,  if  there  is  no 
cross-border  delivery  by  the  trader;  for  electronically  supplied  services;  and  for  services 
received  outside  the  customer's  Member  State).  Another  option  consisted  in  setting  up  an 
additional  list  of  justifications  in  order  to  elaborate  the  principles  of  Article  20(2)  of  the 
Services  Directive  (option  4),  but  that  was  discarded  because  of  its  complexity.  The  last 
option  (option  5),  which  would  require  traders  to  ship  tangible  goods  cross-border,  was 
discarded because it would impose disproportionate costs on businesses. 

• 

Regulatory fitness and simplification 

The  proposal  applies  to  both  traders  and  customers,  i.e.  consumers  and  businesses  as  end 
users. These categories include small and medium-sized enterprises (SMEs) and also micro-
enterprises. Exempting these companies from the rules could undermine the effectiveness of 
the  measure,  as  the  majority  of  online  trade  in  the  Union  is  conducted  by  SMEs,  including 
microenterprises in the Union. 

The proposal will have positive effects on competitiveness by improving access to goods and 
services  within  the  internal  market  for  consumers  and  businesses.  Regarding  international 
trade, traders established in third countries are only within the scope of the Regulation to the 
extent they sell (or intend to sell) goods or services to customers in the Union.  

The  proposal  concerns  the  offline  and  online  environment,  taking  account  of  new 
technological developments where relevant, and is "digital and internet ready". 

• 

Fundamental rights 

The proposal respects in particular Articles 16 ('freedom to conduct a business') and 17 ('right 
to property') of the Charter of Fundamental Rights of the European Union. Traders are already 
subject  to  existing  non-discrimination  provisions  under  EU  law.  Traders  can  continue  to 
decide  where  and  when  they  offer  their  goods  or  services  to  customers.  Their  freedom  to 
refuse  a  sales  request  or  to  apply  different  conditions  is  limited  only  in  line  with  the  non-
discrimination provisions of this Regulation. All other reasons not to sell or to apply different 
conditions remain available to traders, e.g. if the product is not on stock anymore. 

Initial findings published here: 

12 
 http://ec.europa.eu/competition/antitrust/sector_inquiries_e_commerce.html 
13 

SWD(2016)173 and SWD(2016)174. 

EN 

6 

   EN 

                                                 
4. 

BUDGETARY IMPLICATIONS 

The proposal has no impact on the European Union budget. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The Regulation provides for the Commission to carry out periodic reviews of the impact of 
the proposal. 

The Commission will monitor how the Regulation is applied by the market participants across 
the  Union  in  order  to  ensure  a  consistent  approach.  It  will  also  focus  on  the  effects  of  the 
rules. 

• 

Detailed explanation of the specific provisions of the proposal 

Article 1 specifies the subject matter and the scope of the proposed Regulation. The material 
scope of the proposal is aligned with that of Directive 2006/123/EC to the extent possible in 
order  to  ensure  consistency  and  maximum  legal  certainty  for  traders  and  customers.  This 
means  that,  inter  alia,  non-economic  services  of  general  interest,  transport  services,  audio-
visual  services,  gambling  activities,  healthcare  services  and  certain  social  services  are 
excluded  from  the  scope  of  this  Regulation.  The  territorial  scope  is  designed  to  equally 
include  traders  established  in  the  EU  and  those  established  in  third  countries  but  selling  or 
seeking to sell goods and services to customers in the Union. Article 1 also provides certainty 
to  traders  that  compliance  with  this  Regulation  as  such  does  not  mean  that  the  trader  is 
directing his or her activities to a certain Member State for the purposes of Regulation (EC) 
593/200814 and Regulation (EU) No 1215/201215, which regulate matters related to applicable 
law and jurisdiction. 

Article 2 contains the relevant definitions. 

Article 3 establishes the obligations on traders not to prevent access to their online interfaces 
on the basis of customers' residence. It also requires the customer's consent for rerouting and 
requires traders to keep the version of the online interfaces that the customer sought to access 
before having been rerouted easily accessible. The trader is exempted from these obligations 
where the access restrictions or rerouting are required by law. In these exceptional cases the 
trader has to provide a clear justification.  

Article 4 sets out three specific situations under which discrimination of customers based on 
residence  is  prohibited.  The  first  situation  concerns  the  selling  of  physical  goods  when  the 
trader is not involved in the delivery of the product to the Member State of the customer. The 
second situation concerns the provision of electronically supplied services, other than services 
the main feature of which is the provision of access to and use of copyright protected works or 
other protected subject matter. The third situation applies to services, which are provided by 
the trader in a Member State different from that of the customer's Member State of residence.  

14 
15 

Regulation (EC) No 593/2008 on the law applicable to contractual obligations. 
Regulation (EU) 1215/2012 on Jurisdiction and the Recognition and Enforcement of Judgments in Civil 
and Commercial Matters. 

EN 

7 

   EN 

                                                 
Article 5 lays down non-discrimination rules specifically in the context of payments. This rule 
provides that, in certain cases, traders cannot reject or otherwise discriminate with regards to 
payment instruments (such as credit or debit cards). 

Article  6  provides  that  agreements  with  traders  containing  passive  sales  restrictions  which 
would  lead  to  violations  of  the  rules  set  out  in  this  Regulation  are  automatically  void.  It  is 
designed to avoid circumvention of those rules by contractual means. 

Article 7 is concerned with enforcement by Member States' authorities. 

Article  8  requires  Member  States  to  designate  one  or  more  bodies  providing  practical 
assistance to consumers in relation to disputes resulting from this Regulation. 

Article  9  is  concerned  with  periodic  reviews  of  the  application  of  the  Regulation  by  the 
Commission. Here it is specified that the first evaluation should assess, in particular, whether 
the prohibition of discrimination set out in Article 4(1)(b) should be extended to electronically 
supplied services, the main feature of which is the provision of access to and use of copyright 
protected  works  or  other  protected  subject  matter,  provided  that  the  trader  has  the  requisite 
rights for the relevant territories. 

Article  10  provides  for  two  amendments  of  existing  instruments  relating  specifically  to  the 
protection of consumers, namely Regulation (EC) No 2006/2004 and Directive 2009/22/EC. 
This would mean that this Regulation is added in the Annexes of those legal acts so that it can 
also  be  enforced  by  way  of  the  measures  provided  in  the  Consumer  Protection  Cooperation 
Regulation as well as the Injunctions Directive. 

Article 11 deals with entry into force and application. 

EN 

8 

   EN 

2016/0152 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on addressing geo-blocking and other forms of discrimination based on customers' 
nationality, place of residence or place of establishment within the internal market and 
amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 114 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee16,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

In order to realise the objective of ensuring good functioning of the internal market, as 
an area without internal frontiers in which the free movement of inter alia goods and 
services  is  ensured,  it  is  not  sufficient  to  abolish,  as  between  Member  States,  only 
State  barriers.  Such  abolition  can  be  undermined  by  private  parties  putting  in  place 
obstacles  inconsistent  with  internal  market  freedoms.  That  occurs  where  traders 
operating in one Member State block or limit the access to their online interfaces, such 
as  websites  and  apps,  of  customers  from  other  Member  States  wishing  to  engage  in 
cross-border  commercial  transactions  (a  practice  known  as  geo-blocking).  It  also 
occurs  through  other  actions  by  certain  traders  involving  the  application  of  different 
general conditions of access to their goods and services with respect to such customers 
from other Member States, both online and offline. Whereas there may sometimes be 
objective  justifications  for  such  differential  treatment,  in  other  cases  traders  deny 
consumers wishing to engage in cross-border commercial transactions access to goods 
or services, or apply different conditions in this regard, for purely commercial reasons. 

In  this  manner  certain  traders  artificially  segment  the  internal  market  along  internal 
frontiers  and  hamper  the  free  movement  of  goods  and  services,  thus  restricting  the 
rights  of  customers  and  preventing  them  from  benefitting  from  a  wider  choice  and 
optimal conditions. Such discriminatory practices are an important factor contributing 
to the relatively low level of cross-border commercial transactions within the Union, 
including  in  the  sector  of  electronic  commerce,  which  prevents  the  full  growth 
potential  of  the  internal  market  from  being  realised.  Clarifying  in  which  situations 
there can be no justification for differential treatment of this kind should bring clarity 

16 

OJ C […], […], p. […]. 

EN 

9 

   EN 

                                                 
and legal certainty for all participants  in  cross-border  transactions  and should  ensure 
that  rules  on  non-discrimination  can  be  effectively  applied  and  enforced  across  the 
internal market. 

Pursuant  to  Article  20  of  Directive  2006/123/EC  of  the  European  Parliament  and  of 
the  Council17,  Member  States  are  to  ensure  that  service  providers  established  in  the 
Union do not treat recipients of services differently on the basis of their nationality or 
place of residence.  However, that provision has not been fully effective in combatting 
discrimination  and  it  has  not  sufficiently  reduced  legal  uncertainty,  particularly 
because of the possibility to justify the differences in treatment for which it allows and 
the corresponding difficulties in enforcing it in practice. Moreover, geo-blocking and 
other  forms  of  discrimination  based  on  nationality,  place  of  residence  or  place  of 
establishment can also arise as a consequence of actions by traders established in third 
countries, which fall outside the scope of that Directive. 

For the purposes of ensuring the good functioning of the internal market, the targeted 
measures set out in this Regulation, which provide for a clear, uniform and effective 
set of rules on a selected number of issues, are therefore required. 

This  Regulation  aims  at  preventing  discrimination  based  on  customers'  nationality, 
place  of  residence  or  place  of  establishment,  including  geo-blocking,  in  cross-border 
commercial transactions between traders and customers relating to the sales of goods 
and  the  provision  of  services  within  the  Union.  It  seeks  to  address  direct  as  well  as 
indirect discrimination, thus also covering unjustified differences of treatment on the 
basis of other distinguishing criteria which lead to the same result as the application of 
criteria  directly  based  on  customers'  nationality,  place  of  residence  or  place  of 
establishment.  Such  other  criteria  can  be  applied,  in  particular,  on  the  basis  of 
information indicating the physical location of customers, such as the IP address used 
when  accessing  an  online  interface,  the  address  submitted  for  the  delivery  of  goods, 
the  choice  language  made  or  the  Member  State  where  the  customer's  payment 
instrument has been issued. 

Considering  that  some  regulatory  and  administrative  barriers  for  traders  have  been 
removed across the Union in certain services sectors as a result of the implementation 
of Directive 2006/123/EC, in terms of material scope, consistency should be ensured 
between this Regulation and Directive 2006/123/EC. As a consequence, the provisions 
of this Regulation should apply  inter alia to non-audio-visual electronically supplied 
services, the main feature of which is the provision of access to and use of copyright 
protected  works  or  other  protected  subject  matter,  subject  however  to  the  specific 
exclusion provided for in Article 4 and the subsequent evaluation of that exclusion as 
provided for in Article 9. Audio-visual services, including services the main feature of 
which is the provision of access to broadcasts of sports events and which are provided 
on  the  basis  of  exclusive  territorial  licenses,  are  excluded  from  the  scope  of  this 
Regulation.  Access  to  retail  financial  services,  including  payment  services,  should 
therefore  also  be  excluded,  notwithstanding  the  provisions  of  this  Regulation 
regarding non-discrimination in payments.  

Discrimination  can  also  occur  in  relation  to  services  in  the  field  of  transport,  in 
particular with respect to the sales of tickets for the transport of passengers. However, 
in that regard Regulation (EC) No 1008/2008 of the European Parliament and of the 

Directive  2006/123/EC  of  the  European  Parliament  and  of  the  Council  of  12 December 2006  on 
services in the internal market (OJ L 376, 27.12.2006, p. 36). 

(3) 

(4) 

(5) 

(6) 

(7) 

17 

EN 

10 

   EN 

                                                 
(8) 

(9) 

Council18,  Regulation  (EU)  No  1177/2010  of  the  European  Parliament  and  of  the 
Council19  and  Regulation  (EU)  No  181/2011  of  the  European  Parliament  and  of  the 
Council20  already  contain  broad  prohibitions  of  discriminations  covering  all 
discriminatory practices that the present Regulation seeks to address. Furthermore, it is 
intended  that  Regulation  (EC)  No  1371/2007  of  the  European  Parliament  and  of  the 
Council21  will  be  amended  to  that  effect  in  near  future.  Therefore,  and  in  order  to 
ensure consistency with the scope of application of Directive 2006/123/EC, services in 
the field of transport should remain outside the scope of this Regulation. 

This  Regulation  should  be  without  prejudice  to  the  rules  applicable  in  the  field  of 
taxation,  given  that  the  Treaty  on  the  Functioning  of  the  European  Union  (TFEU) 
provides specific base for action at Union level as regards taxation matters. 

Pursuant  to  Regulation  (EC)  No  593/2008  of  the  European  Parliament  and  of  the 
Council22,  the  choice  of  law  applicable  to  contracts  between  a  consumer  and  a 
professional  who  pursues  his  or  her  commercial  or  professional  activities  in  the 
country where the consumer has his or her habitual residence or, by any means, directs 
such activities to that country or to several countries including that country,  may not 
have  the  result  of  depriving  the  consumer  of  the  protection  afforded  to  him  by 
provisions  that  cannot  be  derogated  from  by  agreement  by  virtue  of  the  law  of  the 
country where the consumer has his or her habitual residence. Pursuant to Regulation 
(EU) 1215/2012 of the European Parliament and of the Council23, in matters related to 
a  contract  between  a  consumer  and  a  professional  who  pursues  commercial  or 
professional  activities  in  the  Member  State  of  the  consumer's  domicile  or,  by  any 
means, directs such activities to that Member State or to several States including that 
Member State, a consumer may bring proceedings against the other party in the courts 
of the Member State where he is domiciled and proceedings may be brought against 
the consumer only in those courts. 

(10)  This Regulation should not affect acts of Union law concerning judicial cooperation in 
civil  matters,  notably  the  provisions  on  the  law  applicable  to  contractual  obligations 
and  on  jurisdiction  set  out  in  Regulations  (EC)  No  593/2008  of  the  European 
Parliament and of the Council 24 and (EU) 1215/2012 of the European Parliament and 
of  the  Council25,  including  the  application  of  those  acts  and  provisions  in  individual 

18 

19 

20 

21 

22 

23 

24 

25 

Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 
on common rules for the operation of air services in the Community (OJ L 293, 31.10.2008, p. 3). 
Regulation (EU) No 1177/2010 of the European Parliament and of the Council of 24 November 2010 
concerning  the  rights  of  passengers  when  travelling  by  sea  and  inland  waterway  and  amending 
Regulation (EC) No 2006/2004 (OJ L 334, 17.12.2010, p. 1). 
Regulation (EU) No 181/2011 of the European Parliament and of the Council of 16 February 2011 on 
the rights of passengers in bus and coach transport and amending Regulation (EC) No 2006/2004 (OJ L 
55, 28.2.2011, p. 1). 
Regulation (EC) No 1371/2007 of the European Parliament and of the Council of 23 October 2007 on 
rail passengers’ rights and obligations (OJ L 315, 3.12.2007, p. 14). 
Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the 
law applicable to contractual obligations (Rome I) (OJ L 177, 4.7.2008, p. 6). 
Regulation (EU) No 1215/2012 of the European Parliament and of the Council of 12 December 2012 on 
jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (OJ L 
351, 20.12.2012, p. 1). 
Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the 
law applicable to contractual obligations (Rome I) (OJ L 177, 4.7.2008, p. 6). 
Regulation (EU) No 1215/2012 of the European Parliament and of the Council of 12 December 2012 on 
jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (OJ L 
351, 20.12.2012, p. 1). 

EN 

11 

   EN 

                                                 
cases. In particular, the mere fact that a trader acts in accordance with the provisions of 
this Regulation should not be construed as implying that he directs his activities to the 
consumer's Member State for the purpose of such application. 

(11)  The discriminatory practices that this Regulation seeks to address typically take place 
through  general  terms,  conditions  and  other  information  set  and  applied  by  or  on 
behalf of the trader concerned, as a precondition for obtaining access to the goods or 
services in question, and that are made available to the public at large. Such general 
conditions  of  access  include  inter  alia  prices,  payment  conditions  and  delivery 
conditions. They  can  be  made  available to  the public at large  by  or  on  behalf  of  the 
trader  through  various  means,  such  as  information  published  in  advertisements,  on 
websites or pre-contractual or contractual documentation. Such conditions apply in the 
absence  of an individually negotiated agreement to  the contrary entered into directly 
between  the  trader  and  the  customer.  Terms  and  conditions  that  are  individually 
negotiated  between  the  trader  and  the  customers  should  not  be  considered  general 
conditions of access for the purposes of this Regulation.  

(12)  Both  consumers  and  undertakings  should  be  safeguarded  from  discrimination  for 
reasons related to their nationality, place of residence or place of establishment when 
acting  as  customers  for  the  purposes  of  this  Regulation.  However,  that  protection 
should  not  extend  to  customers  purchasing  a  good  or  a  service  for  resale,  because  it 
would affect widely used distribution schemes between undertakings in a business to 
business  context,  such  as  selective  and  exclusive  distribution,  which  generally  allow 
for  manufacturers  to  select  their  retailers,  subject  to  compliance  with  the  rules  on 
competition. 

(13)  The  effects  for  customers  and  on  the  internal  market  of  discriminatory  treatment  in 
connection to commercial transactions relating to the sales of goods or the provision of 
services within the Union are the same, regardless of whether a trader is established in 
a  Member  State  or  in  a  third  country.  Therefore,  and  with  a  view  to  ensuring  that 
competing traders are subject to the same requirements in this regard, the measures set 
out in this Regulation should apply equally to all traders operating within the Union. 

(14) 

In order to increase the possibility for customers to access information related to the 
sales  of  goods  and  the  provision  of  services  on  the  internal  market  and  to  increase 
transparency,  including with  respect  to  prices, traders  should  not,  through  the  use  of 
technological  measures  or  otherwise,  prevent  customers  from  having  full  and  equal 
access to online interfaces on the basis of their nationality, place of residence or place 
of  establishment.  Such  technological  measures  can  encompass,  in  particular,  any 
technologies  used  to  determine  the  physical  location  of  the  customer,  including  the 
tracking  of  that  by  means  of  IP  address,  coordinates  obtained  through  a  global 
navigation  satellite  system  or  data  related  to  a  payment  transaction.  However,  that 
prohibition of discrimination with respect to access to online interfaces should not be 
understood  as  creating  an  obligation  for  the  trader  to  engage  in  commercial 
transactions with customers. 

(15)  Certain traders operate different versions of their online interfaces, targeting customers 
from  different  Member  States.  While  this  should  remain  possible,  redirecting  a 
customer from one version of the online interface to another version without his or her 
explicit  consent  should  be  prohibited.  All  versions  of  the  online  interface  should 
remain easily accessible to the customer at all times. 

(16) 

In  certain  cases,  blocking,  limiting  of  access  or  redirection  without  the  customer's 
consent  to  an  alternative  version  of  an  online  interface  for  reasons  related  to  the 

EN 

12 

   EN 

(17) 

customer's nationality, place or residence or place of establishment might be necessary 
in order to ensure compliance with a legal requirement in Union law or in the laws of 
Member States in accordance with Union law. Such laws can limit customers' access 
to certain goods or services, for instance by prohibiting the display of specific content 
in certain Member States. Traders should not be prevented from complying with such 
requirements and thus be able to block, limit the access or redirect certain customers or 
customers  in  certain  territories  to  an  online interface,  insofar  as  that  is  necessary  for 
that reason.   

In  a  number  of  specific  situations,  any  differences  in  the  treatment  of  customers 
through the application of general conditions of access, including outright refusals to 
sell  goods  or  to  provide  services,  for  reasons  related  to  the  customers'  nationality, 
place  of  residence  or  place  of  establishment  cannot  be  objectively  justified.  In  those 
situations,  all  such  discrimination  should  be  prohibited  and  customers  should 
consequently be entitled, under the specific conditions laid down in this Regulation, to 
engage in commercial transactions under the same conditions as a local customer and 
have full and equal access to any of the different goods or services offered irrespective 
of  their  nationality,  place  of  residence  or  place  of  establishment.  Where  necessary, 
traders  should  therefore  take  measures  to  ensure  compliance  with  that  prohibition  of 
discrimination if otherwise the customers concerned would be precluded from having 
such  full  and  equal  access.  However,  the  prohibition  applicable  in  those  situations 
should  not  be  understood  as  precluding  traders  from  directing  their  activities  at 
different  Member  States  or  certain  groups  of  customers  with  targeted  offers  and 
differing  terms  and  conditions,  including  through  the  setting-up  of  country-specific 
online interfaces.  

(18)  The first of those situations is where the trader sells goods and there is no cross-border 
delivery of those goods by or on behalf of the trader to the Member State where the 
customer  resides.  In  that  situation  the  customer  should  be  able  to  purchase  goods, 
under  exactly  the  same  conditions,  including  price  and  conditions  relating  to  the 
delivery of the goods, as similar customers who are residents of the Member State of 
the trader. That may mean that a foreign customer will have to pick up the good in that 
Member  State,  or  in  a  different  Member  State  to  which  the  trader  delivers.  In  this 
situation, there is no need to register for value added tax ("VAT") in the Member State 
of the customer, nor arrange for the cross-border delivery of goods.  

(19)  The  second  situation  is  where  the  trader  provides  electronically  supplied  services, 
other than services the main feature of which is the provision of access to and use of 
copyright  protected  works  or  other  protected  subject  matter,  such  as  cloud  services, 
data warehousing services, website hosting and the provision of firewalls. In this case, 
no physical delivery is required, as the services are being supplied electronically. The 
trader can declare and pay VAT in a simplified manner in accordance with the rules on 
VAT Mini-One-Stop-Shop (MOSS) set out in Council Implementing Regulation (EU) 
No 282/201126.  

(20)  Finally,  in  the  situation  where  the  trader  provides  services  and  those  services  are 
received by the customer in the premises of or at a location chosen by the trader and 
different from the Member State of which the customer is a national or in which the 

26 

Council  Implementing  Regulation  (EU)  No  282/2011  of  15  March  2011  laying  down  implementing 
measures for Directive 2006/112/EC on the common system of value added tax (OJ L 77, 23.3.2011, p. 
1). 

EN 

13 

   EN 

                                                 
(21) 

customer has his or her place of residence or place of establishment, the application of 
different general conditions of access for reasons related to such criteria should not be 
justified either. Those situations concern, as the case may be, the provision of services 
such  as  hotel  accommodation,  sport  events,  car  rental,  and  entry  tickets  to  music 
festivals  or  leisure  parks.  In  those  situations,  the  trader  does  not  have  to  register  for 
VAT in another Member State nor arrange for cross-border delivery of goods. 

In all those situations, by virtue of the provisions on the law applicable to contractual 
obligations  and  on  jurisdiction  set  out  in  Regulations  (EC)  No  593/2008  and  (EU) 
1215/2012,  where  a  trader  does  not  pursue  his  activities  in  the  Member  State  of  the 
consumer  or  does  not  direct  his  activities  there,  or  where  the  customer  is  not  a 
consumer, compliance with this Regulation does not imply any additional costs for the 
trader associated with jurisdiction or differences in applicable law. Where, in contrast, 
a trader does pursue his activities in the consumer's Member State or does direct his 
activities there, the trader has manifested its intention to establish commercial relations 
with  consumers  from  that  Member  State  and  thus  been  able  to  take  account  of  any 
such costs. 

(22)  Traders falling under the special scheme provided in Chapter 1 of Title XII of Council 
Directive  2006/112/EC27  are  not  required  to  pay  VAT.  For  those  traders,  when 
providing electronically supplied services, the prohibition of applying different general 
conditions of access for reasons related to the nationality, place of residence or place 
of  establishment  of  the  customer  would  imply  a  requirement  to  register  in  order  to 
account  for  VAT  of  other  Member  States  and  might  entail  additional  costs,  which 
would  be  a  disproportionate  burden,  considering  the  size  and  characteristics  of  the 
traders concerned. Therefore, those traders should be exempted from that prohibition 
for such time as such a scheme is applicable. 

(23) 

In all those situations, traders may in some cases be prevented from selling goods or 
providing  services  to  certain  customers  or  to  customers  in  certain  territories,  for 
reasons related  to  the nationality, place  of residence or  place of establishment of the 
customer,  as  a  consequence  of  a  specific  prohibition  or  a  requirement  laid  down  in 
Union  law  or  in  the  laws  of  Member  States  in  accordance  with  Union  law.  Laws  of 
Member  States  may  also  require,  in  accordance  with  Union  law,  traders  to  respect 
certain rules on the pricing of books. Traders should not be prevented from complying 
with such laws in as far as necessary. 

(24)  Under Union law, traders are in principle free to decide which means of payment they 
wish to accept, including payment brands. However, once this choice has been made, 
in view of the existing legal framework for payment services, there are no reasons for 
traders  to  discriminate  customers  within  the  Union  by  refusing  certain  commercial 
transactions,  or  by  otherwise  applying  certain  different  conditions  of  payment  in 
respect of those transactions, for reasons related to the nationality, place of residence 
or  place  of establishment of the customer. In  this  particular context,  such unjustified 
unequal treatment for reasons related to the location of the payment account, the place 
of establishment of the payment service provider or the place of issue of the payment 
instrument  within  the  Union  should  be  expressly  prohibited  as  well.  It  should  be 
further  recalled  that  Regulation  (EU)  No  260/2012  already  prohibits  all  payees, 

27  

Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ L 
347, 11.12.2006, p. 1–118) 

EN 

14 

   EN 

                                                 
including  traders,  from  requiring  bank  accounts  to  be  located  in  a  certain  Member 
State for a payment in euro to be accepted. 

(25)  Directive 2015/2366/EU of the European Parliament and of the Council28 introduced 
strict  security  requirements  for  the  initiation  and  processing  of  electronic  payments, 
which  reduced  the  risk  of  fraud  for  all  new  and  more  traditional  means  of  payment, 
especially online payments. Payment service providers are obliged to apply so-called 
strong customer authentication, an authentication process that validates the identity of 
the user of a payment service or of the payment transaction. For remote transactions, 
such  as  online  payments,  the  security  requirements  go  even  further,  requiring  a 
dynamic link to the amount of the transaction and the account of the payee, to further 
protect the user by minimising the risks in case of mistakes or fraudulent attacks. As a 
result  of  these  provisions,  the  risk  of  payment  fraud  in  national  and  cross-border 
purchases is brought to an equal level and should not be used as an argument to refuse 
or discriminate any commercial transactions within the Union. 

(26)  This  Regulation should not  affect the application of the rules  on competition,  and in 
particular  Articles  101  and  102  TFEU.  Agreements  imposing  on  traders  obligations 
not to engage in passive sales within the meaning of Commission Regulation (EU) No 
330/201029  to  certain  customers  or  to  customers  in  certain  territories  are  generally 
considered  restrictive  of  competition  and  cannot  normally  be  exempted  from  the 
prohibition  laid  down  in  Article  101(1)  TFEU.  Even  when  they  are  not  caught  by 
Article 101 TFEU, in the context of the application of this Regulation, they disrupt the 
proper  functioning  of  the  internal  market  and  they  may  be  used  to  circumvent  the 
provisions of this Regulation. The relevant provisions of such agreements and of other 
agreements  in  respect  of  passive  sales  requiring  the  trader  to  act  in  violation  of  this 
Regulation  should  therefore  be  automatically  void.  However,  this  Regulation,  and in 
particular its provisions on access to goods or services, should not affect agreements 
restricting active sales within the meaning of Regulation (EU) No 330/2010. 

(27)  Member  States  should  designate  one  or  more  bodies  responsible  for  taking  effective 
action  to  monitor  and  to  secure  compliance  with  the  provision  of  this  Regulation. 
Member  States  should  also  ensure  that  effective,  proportionate  and  dissuasive 
penalties can be imposed on traders in the event of any breach of this Regulation.  

(28)  Consumers should be in the position to receive assistance from responsible authorities 
facilitating the resolution of conflicts with traders, arising from the application of this 
Regulation, including by way of a uniform complaint form. 

(29)  This Regulation should be regularly evaluated, with a view to proposing amendments 
where necessary. The first evaluation should concentrate, in particular, on the possible 
extension of the prohibition of Article 4(1)(b) to electronically supplied services, the 
main  feature  of  which  is  the  provision  of  access  to  and  use  of  copyright  protected 
works or other protected subject matter, provided that the trader has the requisite rights 
for the relevant territories. 

28 

29 

Directive  (EU)  2015/2366  of  the  European  Parliament  and  of  the  Council  of  25  November  2015  on 
payment  services  in  the  internal  market,  amending  Directives  2002/65/EC,  2009/110/EC  and 
2013/36/EU  and  Regulation  (EU)  No  1093/2010,  and  repealing  Directive  2007/64/EC  (OJ  L  337, 
23.12.2015, p. 35–127). 
Commission Regulation (EU) No 330/2010 of 20 April 2010 on the application of Article 101(3) of the 
Treaty  on  the  Functioning  of  the  European  Union  to  categories  of  vertical  agreements  and  concerted 
practices (OJ L 102, 23.4.2010, p. 1). 

EN 

15 

   EN 

                                                 
(30)  With  a  view  to  facilitating  the  effective  enforcement  of  the  rules  laid  down  in  this 
Regulation,  the  mechanisms  to  ensure  cross-border  cooperation  among  competent 
authorities provided for in Regulation (EC) No 2006/2004 of the European Parliament 
and  of  the  Council30  should  also  be  available  in  relation  to  those  rules.  However,  as 
Regulation  (EC)  No  2006/2004  only  applies  with  respect  to  laws  that  protect 
consumers' interests, those measures should be available only when the customer is a 
consumer. Regulation (EC) No 2006/2004 should therefore be amended accordingly. 

(31) 

In order to allow for the bringing of actions for injunctions aimed at the protection of 
the collective interests of consumers with respect to acts contrary to this Regulation in 
accordance  with  Directive  2009/22/EC  of  the  European  Parliament  and  of  the 
Council31, that Directive should also be amended, so as to include a reference to this 
Regulation in its Annex I. 

(32)  Traders,  public authorities  and  other  interested parties  should  have  sufficient  time  to 
adapt to, and ensure compliance with, the provisions of this Regulation. In light of the 
particular  characteristics  of  electronically  supplied  services,  other  than  services  the 
main  feature  of  which  is  the  provision  of  access  to  and  use  of  copyright  protected 
works  or  other  protected  subject  matter,  it  is  appropriate  to  apply  the  prohibition  of 
Article 4(1)(b) only from a later date with respect to the provision of those services.  

(33) 

In  order  to  achieve  the  objective  of  effectively  addressing  direct  and  indirect 
discrimination based on the nationality, place of residence or place of establishment of 
customers,  it  is  appropriate  to  adopt  a  Regulation,  which  directly  applies  in  all 
Member States. This is necessary in order to guarantee the uniform application of the 
non-discrimination  rules  across  the  Union  and  their  entering  into  force  at  the  same 
time.  Only  a  Regulation  ensures  the  degree  of  clarity,  uniformity  and  legal  certainty 
which is necessary in order to enable customers to fully benefit from those rules. 

(34)  Since  the  objective  of  this  Regulation,  namely  the  prevention  of  direct  and  indirect 
discrimination  based  on  nationality,  place  of  residence  or  place  of  establishment  of 
customers, including geo-blocking, in commercial transactions with traders within the 
Union,  cannot  be  sufficiently  achieved  by  Member  States,  due  to  the  cross-border 
nature of the problem and the insufficient clarity of the existing legal framework, but 
can rather, by reason of its scale and potential effect on trade in the internal market be 
better achieved at Union level, the Union may adopt measures in accordance with the 
principle  of  subsidiarity  as  set  out  in  Article  5  of  the  Treaty  on  European  Union.  In 
accordance  with  the  principle  of  proportionality,  as  set  out  in  that  Article,  this 
Regulation does not go beyond what is necessary in order to achieve that objective. 

(35)  This Regulation respects fundamental rights and observes the principle recognised in 
the  Charter  of  Fundamental  Rights  of  the  European  Union.  In  particular  this 
Regulation seeks to ensure full respect of Articles 16 and 17 thereof, 

30 

31 

Regulation (EC) No 2006/2004 of the European Parliament and of the Council of 27 October 2004 on 
cooperation between national authorities responsible for the enforcement of consumer protection laws 
(the Regulation on consumer protection cooperation) (OJ L 364, 9.12.2004, p. 1).   
Directive 2009/22/EC of the European Parliament and of the Council of 23 April 2009 on injunctions 
for the protection of consumers' interests (OJ L 110, 1.5.2009, p. 30). 

EN 

16 

   EN 

 
                                                 
HAVE ADOPTED THIS REGULATION: 

Article 1 

Objective and scope 

1. 

This Regulation seeks to contribute to the proper functioning of the internal market 
by preventing discrimination based, directly or indirectly, on the nationality, place of 
residence or place of establishment of customers.  

2. 

This Regulation applies to the following situations:  

(a)  where the trader sells  goods, provides services, or seeks to do so, in a Member 
State  other  than  the  Member  State  in  which  the  customer  has  the  place  of 
residence or the place of establishment;  

(b)  where the trader sells goods, provides services, or seeks to do so, in the same 
Member State as the one in which the customer has the place of residence or 
place of establishment, but the customer is a national of another Member State;  

(c)  where  the  trader  sells  goods  or  provides  services,  or  seeks  to  do  so,  in  a 
Member State in which the customer is temporarily located without residing in 
that Member State or having the place of establishment in that Member State. 

This  Regulation  does  not  apply  to  the  activities  referred  to  in  Article  2(2)  of 
Directive 2006/123/EC. 

This  Regulation  shall  be  without  prejudice  to  the  rules  applicable  to  the  field  of 
taxation. 

This Regulation shall not affect acts of Union law concerning judicial cooperation in 
civil  matters.  Compliance  with  this  Regulation  shall  not  be  construed  as  implying 
that a trader directs his or her activities to the Member State where the consumer has 
the habitual residence or domicile within the meaning of point (b) of Article 6(1) of 
Regulation  (EC)  No  593/2008  and  point  (c)  of  Article  17(1)  of  Regulation  (EU) 
1215/2012. 

Insofar  as  the  provisions  of  this  Regulation  conflict  with  the  provisions  of  Article 
20(2) of Directive 2006/123/EC, the provisions of this Regulation shall prevail.  

3. 

4. 

5. 

6. 

Article 2 

Definitions 

For  the  purposes  of  this  Regulation,  the  definitions  set  out  in  Article  7  of  Implementing 
Regulation (EU) No 282/2011, Article 2(10), (20) and (30) of Regulation (EU) 2015/751 of 
the European Parliament and Council32 and Article 4(8), (9), (11), (12), (14), (23), (24) and 
(30) of Directive (EU) 2015/2366 shall apply.  

The following definitions shall also apply: 

(b) 

'consumer' means any natural person who is acting for purposes which are outside his 
or her trade, business, craft or profession;  

32 

Regulation  (EU)  2015/751  of  the  European  Parliament  and  of  the  Council  of  29  April  2015  on 
interchange fees for card-based payment transactions (OJ L 123, 19.5.2015, p. 1). 

EN 

17 

   EN 

                                                 
(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

1. 

2. 

3. 

4. 

'customer'  means  a  consumer  who,  or  an  undertaking  which,  is  a  national  of  a 
Member  State  or  has  his  or  her  place  of  residence  or  place  of  establishment  in  a 
Member State, and intends to purchase or purchases a good or a service within the 
Union, other than for resale; 

'general  conditions  of  access'  means  all  terms,  conditions  and  other  information, 
including sale prices, regulating the access of customers to goods or services offered 
for sale by a trader, which are set, applied and made available to the public at large 
by  or  on  behalf  of  the  trader  and  which  apply  in  the  absence  of  an  individually 
negotiated agreement between the trader and the customer; 

'goods' means any tangible movable item, with the exception of items sold by way of 
execution  or  otherwise  by  authority  of  law;  water,  gas  and  electricity  shall  be 
considered as goods within the meaning of this Regulation where they are put up for 
sale in a limited volume or a set quantity; 

'online interface' means any software, including a website and applications, operated 
by  or  on  behalf  of  a  trader,  which  serves  to  give  customers  access  to  the  trader's 
goods or services with a view to engaging in a commercial transaction with respect 
to those goods or services; 

'service'  means  any  self-employed  economic  activity,  normally  provided  for 
remuneration, as referred to in Article 57 of the Treaty; 

'trader'  means  any  natural  or  legal  person,  irrespective  of  whether  privately  or 
publicly  owned,  who  is  acting,  including  through  any  other  person  acting  in  his  or 
her name or on his or her behalf, for purposes relating to his or  her trade, business, 
craft or profession.  

Article 3 

Access to online interfaces 

Traders shall not, through the use of technological measures or otherwise, block or 
limit customers' access to their online interface for reasons related to the nationality, 
place of residence or place of establishment of the customer. 

Traders shall not, for reasons related to the nationality, place of residence or place of 
establishment  of  the  customer,  redirect  customers  to  a  version  of  their  online 
interface  that  is  different  from  the  online  interface  which  the  customer  originally 
sought to access, by virtue of its layout, use of language or other characteristics that 
make it specific to customers with a particular nationality, place of residence or place 
establishment,  unless  the  customer  gives  his  or  her  explicit  consent  prior  to  such 
redirection.  

In  the  event  of  such  redirection  with  the  customer's  explicit  consent,  the  original 
version of the online interface shall remain easily accessible for that customer. 

The  prohibitions  set  out  in  paragraphs  1  and  2  shall  not  apply  where  the  blocking, 
limitation of access or redirection with respect to certain customers or to customers 
in  certain  territories  is  necessary  in  order  to  ensure  compliance  with  a  legal 
requirement in Union law or in the laws of Member States in accordance with Union 
law. 

Where a trader blocks or limits access of customers to an online interface or redirects 
customers to a different version of the online interface in compliance with paragraph 

EN 

18 

   EN 

 
4, the trader shall provide a clear justification. That justification shall be given in the 
language of the online interface that the customer originally sought to access. 

Article 4 

Access to goods or services 

1. 

Traders  shall  not  apply  different  general  conditions  of  access  to  their  goods  or 
services,  for  reasons  related  to  the  nationality,  place  of  residence  or  place  of 
establishment of the customer, in the following situations: 

2. 

3. 

1. 

(a)  where the trader sells goods and those goods are not delivered cross-border to 

the Member State of the customer by the trader or on his or her behalf; 

(b)  where  the trader provides  electronically supplied services, other  than services 
the  main  feature  of  which  is  the  provision  of  access  to  and  use  of  copyright 
protected works or other protected subject matter;  

(c)  where the trader provides services, other than those covered by point (b), and 
those services are supplied to the customer in the premises of the trader or in a 
physical location where the trader operates, in a Member State other than that 
of which the customer is a national or in which the customer has the place of 
residence or the place of establishment. 

The prohibition set out in point (b) of paragraph 1 shall not apply to traders that are 
exempted  from  VAT  on  the  basis  of  the  provisions  of  Chapter  1  of  Title  XII  of 
Directive 2006/112/EC. 

The prohibition set out in paragraph 1 shall not apply in so far as a specific provision 
laid down in Union law or in the laws of Member States in accordance with Union 
law  prevents  the  trader  from  selling  the  goods  or  providing  the  services  to  certain 
customers or to customers in certain territories  

With  respect  to  sales  of  books,  the  prohibition  set  out  in  paragraph  1  shall  not 
preclude traders from applying  different prices to  customers  in certain territories in 
so far as they are required to do so under the laws of Member States in accordance 
with Union law. 

Article 5 

Non-discrimination for reasons related to payment 

Traders shall not, for reasons related to the nationality, place of residence or place of 
establishment  of  the  customer,  the  location  of  the  payment  account,  the  place  of 
establishment of the payment service  provider or  the place of issue  of the payment 
instrument within the Union, apply different conditions of payment for any sales of 
goods or provision of services, where: 

(a) 

those  payments  are  made  through  electronic  transactions  by  credit  transfer, 
direct  debit  or  a  card-based  payment  instrument  within  the  same  payment 
brand; 

(b) 

the payee can request strong customer authentication by the payer pursuant to 
the Directive (EU) 2015/2366; and  

(c) 

the payments are in a currency that the payee accepts. 

EN 

19 

   EN 

 
2. 

The prohibition set out in paragraph 1 shall not preclude traders' possibility to request 
charges for the use of a card-based payment instrument for which interchanges fees 
are  not  regulated  under  Chapter  II  of  Regulation  (EU)  2015/751  and  for  those 
payment  services  to  which  Regulation  (EU)  No  260/2012  does  not  apply.  Those 
charges  shall  not  exceed  the  costs  borne  by  the  trader  for  the  use  of  the  payment 
instrument. 

Article 6 

Agreements on passive sales 

Agreements imposing on traders obligations, in respect of passive sales, to act in violation of 
this Regulation shall be automatically void. 

1. 

2. 

1. 

2. 

Article 7 

Enforcement by Member State authorities  

Each Member State shall designate a body or bodies responsible for the enforcement 
of  this  Regulation.  Member  States  shall  ensure  that  adequate  and  effective  means 
exist  with  the  body  or  bodies  designated  in  order  to  enforce  compliance  with  this 
Regulation.  

Member States shall lay down the rules on the penalties applicable for infringements 
of the provisions of this Regulation and shall take all measures necessary to ensure 
that  they  are  implemented.  The  penalties  provided  for  shall  be  effective, 
proportionate and dissuasive.  

Article 8 

Assistance to consumers 

Each  Member  State  shall  confer  responsibility  for  providing  practical  assistance  to 
consumers to a body or bodies in case of a dispute between a consumer and a trader 
arising from the application of this Regulation. Each Member State shall designate a 
body or bodies responsible for that task.  

The bodies referred to in paragraph 1 shall offer consumers a uniform model form to 
file  complaints  to  the  bodies  referred  to  in  paragraph  1  and  in  Article  7(1).  The 
Commission shall assist those bodies in developing this model form.   

Article 9 

Review clause 

By [date: two years after the entry into force of this Regulation] and every five 
1. 
years thereafter, the Commission shall report on the evaluation of this Regulation to 
the  European  Parliament,  the  Council  and  the  European  Economic  and  Social 
Committee. That report shall, where necessary, be accompanied by a proposal for an 
technical  and  economic 
amendment  of 
developments. 

this  Regulation, 

light  of 

legal, 

in 

2. 
The first evaluation referred to in paragraph 1 shall be carried out, in particular, 
with a view to assessing whether the prohibition of Article 4(1)(b) should also apply 
to  electronically  supplied  services,  the  main  feature  of  which  is  the  provision  of 

EN 

20 

   EN 

 
 
access  to  and  use  of  copyright  protected  works  or  other  protected  subject  matter, 
provided that the trader has the requisite rights for the relevant territories.  

Article 10 

Amendments to Regulation (EC) No 2006/2004 and Directive 2009/22/EC 

1. 

2. 

In  the  Annex  to  Regulation  (EC)  No  2006/2004  the  following  point  [number]  is 
added: "[number] [full title of this Regulation] (OJ L XX, XX.XX.Year, p. X), only 
when the customer is a consumer within the meaning of Article 2(3) of Regulation 
No XXXX/Year."  

In  Annex  I  to  Directive  2009/22/EC  the  following  point  [number]  is  added: 
"[number] [full title of this Regulation] (OJ L XX, XX.XX.Year, p. X)." 

Article 11 

Final provisions 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

It shall apply from [date: six months following the day of its publication].  

However, point (b) of Article 4(1) shall apply from 1 July 2018. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

21 

   EN