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Geo-blocking in Cross-border e-Commerce in the EU Digital Single Market

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Abstract

A cross-border e-commerce Mystery Shopping Survey conducted in 2015, finds that the practice of erecting virtual barriers is still common in cross-border e-commerce within the EU, as it was in 2009. Electrical appliances, electronics and computer games are particularly difficult to buy online from another country. Geo-blocking often takes place at the delivery stage of the online purchase process and less often at the access stage. Larger websites can also block access according to a buyers IP address. Geo-blocking is less probably between countries sharing a common language while a common border or geographical proximity has no effect. Travel services have a different pattern of geo-blocking from tangible goods, where geo-blocking mainly takes place at the access stage. Price analysis shows that differentiation takes place in all sectors, but is more common in the sectors less affected by geo-blocking.

Suggested Citation

  • Melisande Cardona, 2016. "Geo-blocking in Cross-border e-Commerce in the EU Digital Single Market," JRC Working Papers on Digital Economy 2016-04, Joint Research Centre.
    • Handle: RePEc:ipt:decwpa:2016-04
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC101438
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    Cited by:

    1. BROOCKS Annette & DUCH BROWN Nestor & GOMEZ HERRERA Maria Estrella & MARTENS Bertin, 2020. "Geo-blocking: A literature review and new evidence in online audio-visual services," JRC Working Papers on Digital Economy 2020-01, Joint Research Centre.
    2. Bourreau, Marc & Manenti, Fabio M., 2023. "Selling cross-border in online markets: The impact of the ban on geoblocking strategies," International Journal of Industrial Organization, Elsevier, vol. 86(C).
    3. Hamelmann, Lisa & Klein, Gordon J., 2017. "Removing geo-blocking: What are the effects on innovation for vertically differentiated goods?," CAWM Discussion Papers 100, University of Münster, Münster Center for Economic Policy (MEP).

    More about this item

    Keywords

    geo-blocking; mystery shopping; cross-border e-commerce; digital single market;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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