Study for the further evaluation of the geo-blocking regulation : study for the European Commission, Directorate General for Communications Networks, Content, and Technology

The "Geo-blocking Regulation," introduced in 2018, addresses discriminatory online practices affecting consumers based on their location, residence, or nationality. The present study is part of on-going monitoring and seeks to provide a holistic review of the evolution of cross-border e-commerce trade within the EU since the adoption of the Geo-blocking Regulation. The study reviews the literature on cross-border e-commerce; analyses existing data on data on e-commerce trade in the European Union; and presents the results of a novel survey of more than 2,000 firms selling online across the EU as well as interviews with key stakeholders representing both e-commerce sellers and consumers. The COVID-19 pandemic had a significant impact on e-commerce and significantly accelerated its growth both within and across borders. This is the single largest shock to the growth of e-commerce in the recent past. A number of challenges persist in cross-border e-commerce and these relate mostly to harmonisation of regulations and VAT rules. Additionally, consumers increased demand for fast deliveries often makes it difficult for cross-border traders to compete with national traders. Several policy options were suggested by stakeholders. Further comprehensive analysis is necessary to evaluate the potential consequences and cost-benefit considerations of these policy proposals.