Section 33d UWG – Prohibition of Geoblocking

Geoblocking refers to the technical or contractual practice of companies treating customers differently or excluding them from access to goods and services based on their place of residence, nationality, or location. Typically, this occurs through the blocking of websites, automatic redirects to country-specific pages, different prices, or restricted payment methods. Within the European Union, such behavior is generally inadmissible if it concerns cross-border offers and there is no objective justification. The EU Geoblocking Regulation obliges providers to treat customers without discrimination, while Section 33d UWG ensures enforcement in Austria: violations of the central prohibitions of discrimination (particularly regarding access to online offers, contractual terms, and payments) constitute an administrative offense and can be punished with fines.

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Geoblocking in the EU single market

Geoblocking contradicts the fundamental idea of the EU single market. Within the European Union, goods and services should be freely accessible, regardless of the member state in which a customer lives. This is precisely where the prohibition of geoblocking comes in: companies may not disadvantage customers solely because of their location.

In practice, this primarily affects online retail. Many providers previously tried to exclude customers from other countries or offer them worse conditions. However, this leads to an artificial division of the market, which contradicts the goal of a unified economic area.

Typical problems in the single market arise when:

• Customers are denied access to a web shop, even though the offer is fundamentally available
• different prices are charged without an objective reason
• certain countries are systematically disadvantaged

The prohibition of geoblocking ensures that customers have comparable opportunities throughout the EU. At the same time, companies retain a certain amount of leeway, for example regarding delivery areas or logistical decisions. The decisive factor is always: the unequal treatment must not be based solely on the customer’s location.

Overview of the EU Geoblocking Regulation 2018/302

The Geoblocking Regulation is the central set of rules at the EU level. It has been in force since December 2018 and is addressed to companies that offer goods or services within the EU. Its goal is clear: to prevent unjustified discrimination.

The Geoblocking Regulation does not apply to purely domestic matters. It primarily takes effect when there is a cross-border element within the single market.

The regulation specifies the areas in which providers must treat customers equally. It focuses primarily on three central points:

• Access to online offers must not be blocked or restricted
• Contractual terms and prices must be designed without discrimination
• Payment methods must not be offered differently depending on origin

The regulation does not oblige companies to deliver to all countries. A retailer may restrict their delivery area.

Section 33d UWG as a national provision

Section 33d UWG enforces the EU requirements in Austria. The provision does not create new prohibitions but ensures that violations of the Geoblocking Regulation are actually sanctioned.

The core of the regulation is simple: anyone who violates the central requirements of the EU regulation commits an administrative offense. The authorities can impose fines in such cases.

Typical consequences of a violation are:

• Fines by the district administrative authority
• Proceedings before administrative courts in the event of complaints
• additional claims from competitors or customers

A milder approach applies to smaller companies. In certain cases, the focus is initially on advice before a penalty is imposed. Nevertheless, the risk remains if companies do not adapt their systems.

Section 33d UWG makes it clear: geoblocking is not a trivial offense. Anyone who impermissibly disadvantages customers in the EU single market must expect concrete legal consequences.

Inadmissible forms of geoblocking

Not every form of different treatment is prohibited, but many typical practices are clearly inadmissible. The decisive factor is whether the provider disadvantages customers solely because of their place of residence or nationality.

The geoblocking rules primarily cover digital distribution. As soon as a customer from another EU state wishes to access an offer, strict principles of equal treatment apply.

Inadmissible in particular are:

• Technical or organizational measures that exclude customers from certain countries
• different conditions without an objective reason, for example regarding prices or contract content
• Restrictions in the ordering process that specifically affect certain user groups

The regulations apply regardless of whether the behavior is intentional or automated. Even standardized systems or preset shop functions can violate the prohibition.

Blocking of online shops and websites

One of the most common forms of geoblocking is the full or partial blocking of websites. In this case, the provider prevents users from certain countries from accessing the web shop at all. Technically, this is usually done via the IP address or location data. The customer then either receives no access or only a restricted version of the page.

Typical inadmissible measures are:

• Blocking access to an online shop for foreign users
• Restriction of functions, such as no shopping cart or no ordering possible
• targeted hiding of products or prices for certain countries

Such blocks are generally prohibited if they target the customer’s location alone. An exception exists only if legal regulations make a restriction mandatory.

For companies, this means: websites must be designed so that customers from the entire EU can, in principle, access them.

Automatic redirects without consent

Many providers automatically redirect users to a country-specific version of their website. This is precisely where another central prohibition comes in.

A redirect is only permitted if the customer expressly consents. Without this consent, the provider may not simply send the user to a different version of the page.

Particularly problematic are:

• automatic redirection to national websites without a choice
• hidden restrictions through other language or price versions
• difficult access to the originally requested page

Customers should decide for themselves which offer they use. A customer from Austria is therefore also allowed to use the German version of a shop if it offers better conditions.

Different prices and contractual terms

Different prices or contractual terms are only permissible if they are objectively justified. The law does not prohibit price differences per se, but rather discrimination based solely on the customer’s location.

In practice, it often happens that customers from different countries see different offers. However, it becomes problematic when customers are actively prevented from using a cheaper offer.

Inadmissible in particular are:

• higher prices only because of the customer’s place of residence
• deviating T without a comprehensible reason
• refusal to conclude a contract for an identical service

On the other hand, it remains permitted for companies to operate different websites with different prices.

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Discrimination regarding payment methods

Providers must also treat all customers equally when it comes to payment. As soon as a company accepts certain payment methods, it must generally offer these to all EU customers.

The origin of the customer or their means of payment must not play a role. This particularly concerns the location of the bank account or the state of issue of the credit card.

Inadmissible are, for example:

• rejection of payments from certain EU states
• restriction of individual payment methods for foreign customers
• additional conditions only because of the location

The goal is a uniform and fair payment process in the single market. Customers should have the same opportunities to complete a purchase regardless of their place of residence.

Exceptions are only considered within narrow limits, such as in the case of concrete security concerns or a lack of credit checks. However, these must be comprehensible and proportionate.

Permissible restrictions and exceptions

Not every form of unequal treatment is automatically prohibited. The law recognizes that companies must make economic and organizational decisions. Therefore, there are clear exceptions to the geoblocking prohibition.

Important: the restriction must not be based solely on the customer’s origin. There must be an objective reason.

Typical permissible scenarios are:

• Limitation of the delivery area to certain countries
• different prices due to taxes or shipping costs
• adjustment of offers to the legal requirements of individual states

A central point is the lack of an obligation to deliver to other EU states. A retailer does not have to deliver Europe-wide. However, they may not prevent customers from buying under the same conditions if the customers organize a suitable solution for the delivery themselves.

No obligation to deliver to all EU member states

The geoblocking prohibition does not mean that companies must deliver Europe-wide. Retailers may decide for themselves to which countries they ship their goods. This entrepreneurial freedom remains fully intact.

However, the distinction is important: the decision regarding the delivery area is permitted, but discrimination against customers is not. A provider may therefore say that they only deliver within Austria. However, they may not refuse the purchase to a foreign customer if that customer provides an Austrian delivery address.

Typical permissible arrangements are:

• Restriction of shipping to certain countries or regions
• collection of the goods at the company’s location
• organization of the delivery by the customer themselves

For companies, this means clear rules of the game. Logistics may be restricted, but access to the purchase must not be blocked.

Different offers in cases of objective justification

Different offers are permissible if there is an objective reason. The law does not require complete equality, but rather a comprehensible and fair differentiation.

In practice, economic and legal factors play a major role. Companies may adjust their prices and services to external framework conditions.

Permissible reasons can be:

• different tax rates in the EU states
• deviating shipping costs or logistical efforts
• national legal requirements or market conditions

The connection with an objective factor is always decisive. As soon as the unequal treatment is based only on the place of residence or nationality, it becomes inadmissible.

Special features for services and digital content

Not all services fall fully under the geoblocking prohibition. Especially in the digital sector, special rules apply that surprise many users. An important point concerns copyright-protected content such as streaming services. These are often subject to other legal requirements. Therefore, restrictions may continue to exist here.

Typical particularities are:

• Streaming and online content are subject to their own regulations
• some sectors are excluded from the scope of application
• access can be tied to licensing rights or usage areas

In addition, so-called portability within the EU applies. Users may also use certain digital content abroad if they have lawfully subscribed to it in their home country.

For providers, this means: the legal assessment depends heavily on the type of service. While classic online shops are subject to strict rules, differentiated requirements exist for digital content.

Legal consequences of violations of geoblocking rules

Violations of the geoblocking prohibition in Austria have two central legal levels: administrative law and competition law under the UWG. Companies must therefore expect official penalties and civil law claims.

Administrative legal consequences under Section 33d UWG

Anyone who violates the Geoblocking Regulation commits an administrative offense. The sanction follows directly from Section 33d UWG.

Specifically, the following are threatened:

• Fine of up to € 2,900 by the district administrative authority
• Substitute imprisonment of up to two weeks if the fine is not paid
• Ex officio proceedings, i.e., regardless of whether a customer actively files a complaint

A special rule applies to small and medium-sized enterprises (SMEs):
Under certain conditions, the authority can initially proceed according to the principle of “advice instead of punishment” and set a deadline for rectification.

Significance for companies and online retailers

For companies, the geoblocking prohibition has direct practical significance. Especially in online retail, the rules affect almost all processes, from the web shop to payment processing.

Many violations do not arise intentionally, but through technical presets or outdated systems. Therefore, regular review is crucial.

Particularly relevant are:

• Web shop systems with automatic country recognition
• country-specific price or offer structures
• payment systems with restricted functions

Companies must actively adapt their processes. Only in this way can it be ensured that customers from the entire EU are treated correctly.

Adjustment of web shops and terms and conditions

The practical implementation of geoblocking rules takes place primarily in the web shop and in the T This is precisely where most legal risks arise.

Companies should specifically check and adapt their systems. This is not just about legal texts, but also about technical functions.

Important adjustment areas are:

• Accessibility of the web shop for all EU customers
• uniform presentation of prices and contractual terms
• non-discriminatory design of payment methods

Even small details can be decisive. An automatic redirect or a blocked payment method can already constitute a violation. Acting early significantly reduces the risk and simultaneously strengthens customer trust.

Your Benefits with Legal Assistance

Geoblocking rules seem technical at first glance, but have clear legal consequences. Companies must check whether their web shop, their payment processing, their T, or their distribution agreements impermissibly disadvantage customers from other EU states. Even an automatic redirect, a blocked payment method, or a rejected purchase can trigger legal problems.

Legal support helps to identify risks early and avoid expensive consequences. This is particularly important for operators of online shops, platforms, and distribution structures with customers from several EU states.

• Legally secure review of web shop, TCs, payment methods, and delivery conditions.
• Avoidance of administrative fines under Section 33d UWG and potential UWG claims.
• Clear recommendations for action if customers, competitors, or authorities allege geoblocking.

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Frequently Asked Questions – FAQ

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