At the back end of 2023, the European Parliament discussed expanding the Geo-blocking Regulation (the Regulation) to include audio-visual content. Geo-blocking is technology that restricts access to internet content based upon the user's geographical location. The decision will no doubt have an impact on the sports and media industries.
Before Christmas of 2023, key developments occurred in applying EU law to sports, including a significant ruling by the Court of Justice on the European Super League, a detailed breakdown of which is set out in one of our previous articles here. Additionally, on 13 December, the European Parliament voted on extending the Regulation to cover audio-visual services.
Since 2018, the European Commission has banned aspects of geo-blocking to create a more connected and competitive market. The Regulation initially excluded audio-visual content, as it wished to offer customers better deals and facilitate European market access for service providers.
Traditionally, sports and media relied on territorial exclusivity for content distribution. Geo-blocking technology supported this system by limiting content access to specific territories.
Following the Regulation enactment, various EU publications assessed its impact. In November 2020, the EU Commission's review explored extending the Regulation to include audio-visual content. A June 2023 report by the Committee on the Internal Market and Consumer Protection called for a reassessment of geo-blocking rules.
Members of the European Parliament initially voted against expanding the Geo-Blocking Regulation to audio-visual content. They emphasised potential revenue loss, risks to content investment, erosion of contractual freedom and reduced cultural diversity.
It's important to note that the EU Parliament's vote is non-binding. Despite lacking legislative force, the decision at least reassures the audio-visual industry for now. The next review of the Geo-Blocking Regulation is scheduled to take place in 2025, so this is an area where further developments should be expected.
An important factor to consider is the impact on UK businesses. Following Brexit, the UK version of the Geo-Blocking Regulation was repealed. This means that traders from the UK, EU and third countries would not be prohibited from discriminating between EU customers and UK customers. For instance, a UK trader would be able to offer different terms to a UK customer compared to a French customer.
However, the original EU Regulation will continue to apply to UK businesses operating within the EU. This means that a UK trader will not be able to discriminate between customers in different EU member states, for instance, between a French and a German customer. Whilst there are no changes to the Regulation as of now, it will be interesting to note the potential impact on UK businesses that sell goods and services within the EU, with respect to the next review of the Regulation in 2025. Watch this space for further updates.
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