The EU is cracking down on sales practices that disadvantage customers, according to a BBC News report. Six publishers were fined EUR 7.8 million (GBP 6.9 million) for restricting cross-border sales, including Valve, Bandai Namco, Capcom, ZeniMax, Focus Home and Koch Media.
The practice, known as “geo-blocking”, means that games are locked in the region, not allowing customers to buy cheaper versions for different countries. Some European countries have lower incomes than others, so these countries generally get lower prices. The countries in particular that Geo-locked Valve were the Czech Republic, Poland, Hungary, Romania, Slovakia, Estonia, Latvia and Lithuania.
Five of the six allegedly cooperated with the EU, which led to a reduction in their fines, but according to the EU Competition Commission, Valve did not cooperate and their fine was set at EUR 1.6 million (1.4 million). GBP)) without discount. Valve intends to appeal the fine and denies that they refused to cooperate.
Their spokesman, Doug Lombardi, told the BBC that only 3% of all games using Steam have regional blockages and that EU action could cause publishers to “raise prices in less affluent regions” rather than allow customers to buy games at cheaper prices.
The EU Commissioner for Competition condemned the use of geo-blocking in a statement:
“Such practices deprive European consumers of the benefits of the EU’s digital single market and the opportunity to look for the best offer in the EU.”
What do you think about this situation? Do you think that EU action will benefit customers or lead to higher prices in less rich countries? Tell us in the comments.