Apple, Netflix and beyond: How geo-blocking fuels digital inequality

Last week, a joint investigation by the European Commission and the Consumer Protection Cooperation (CPC) Network issued a warning to Apple, urging the company to stop its geo-blocking practices.

The European Union has taken a firm stance against this practice, arguing that it perpetuates digital inequality by creating barriers for consumers within the bloc’s single market.

“The EU Geo-blocking Regulation prohibits unjustified discrimination between EU customers based on their nationality, residence, or place of establishment when they want to buy goods and services from traders located in a different Member State,” says Katherin Quinn, the media communications manager at the Competition and Consumer Protection Commission (CCPC).

The world’s second-most valuable tech company is now facing serious digital inequality allegations due to its limiting app downloads, payment methods, and enforcing region-specific interfaces.

CPC Network regulators claim that the company’s geo-blocking measures unfairly discriminate against European consumers.

Apple now has one month to respond to these findings and propose solutions to address these issues or face ‘enforcement measures’, which could include fines of up to four percent of the company's global annual turnover.

Yet, Apple isn’t the only tech giant raising questions over geo-blocking. From Netflix to Amazon, other major platforms have also embraced this contentious practice, fueling debates about consumer rights and the implications of digital barriers in an increasingly interconnected world.

So, what exactly is geo-blocking, and how have past examples influenced the conversation around digital access and fairness for users across borders?

Location-based restrictions

“In simple terms, geo-blocking refers to technology that restricts access to digital content or services based on a user's geographical location,” explains Natasha Tusikov, an associate professor at York University who specialises in the intersection of law, crime, technology, and regulation.

Following the recent investigation, the CCPC, working with European counterparts through the EU Consumer Protection Cooperation (CPC) Network, identified potential breaches of the geo-blocking regulation on certain Apple media services.

Katherin Quinn of CCPC describes the practice as “when certain traders apply different general conditions of access to their goods and services based on the customer's member state, whether online or offline”.

“Most commonly, companies use geoblocking to divide countries into differential marketplaces,” Tusikov tells TRT World.

The practice allows tech companies to tailor content offerings based on location, limiting what consumers can access. The reach of these implications is significant, particularly in today’s digital era, where the exchange of information and access to content plays a pivotal role.

“Consumers face limitations when it comes to online access, payment methods, and app downloads,” says Quinn about the recent Apple investigation that uncovers these troubling patterns.

Apple’s restrictions on payment cards, for instance, mean that users can only use methods issued in their account’s registered country—a policy that disproportionately affects frequent travellers, expatriates, and people fleeing domestic situations

Apple’s case is a high-profile example, but it’s far from the only company using geo-blocking.

Major streaming platforms like Netflix and Amazon Prime Video have long restricted content libraries, tailoring what users can watch based on their location. This practice isn’t limited to video streaming; Spotify’s music library changes from one country to another. Meanwhile, YouTube imposes regional restrictions on videos, sometimes blocking them entirely in certain locations.

However, geographical proximity does not always guarantee uniform access to content. Even within North America, there are stark differences in what consumers can access. For instance, streaming giant Netflix offers vastly different catalogues depending on the country. While viewers in the US enjoy access to far more titles, those in Canada have fewer options, even though the two countries are geographically close.

As Tusikov points out, “It’s not simply tech companies making these rules but also copyright owners of the content being distributed,” which often complicates efforts to standardise access.

Consumer rights

The debate around geo-blocking touches on fundamental questions of consumer rights and digital equality. Critics argue that these practices undermine the EU’s goal of a unified single market, where goods and services should be equally accessible across member states.

“Geo-blocking negatively affects the exchange of information and ideas, as companies determine which content is available in which region,” Tusikov notes.

This selective availability can stifle knowledge transfer and limit opportunities for education, cultural exchange, and economic participation.

Regulatory bodies like the European Commission and the CPC Network are stepping in to hold tech giants accountable.

“The CPC Network found a number of limitations on Apple Media Services which, according to the network's assessment, unlawfully discriminate against European consumers based on their place of residence,” Catherine Quinn tells TRT World. The enforcement measures proposed by the EU could set a precedent, pushing other companies to reconsider how they handle digital access across borders.

Yet, geo-blocking stretches well beyond entertainment. These digital barriers don’t just limit access to movies or music; they can also restrict vital resources.

“Geo-blocks can prevent people from accessing important health information,” Tusikov says, emphasising that these restrictions can have severe real-world effects, especially in regions with limited access to medical resources or information on sensitive topics.

Global need for regulation

While the EU's Geo-blocking Regulation serves as a fair and equal mechanism for promoting digital equality within Europe, other regions have yet to implement similar measures.

This regulation, as CCPC adds, is crucial for cross-border accessibility in the European market. Its significance extends beyond the EU, reflecting the importance of similar protections in other regions.

Tusikov highlights the contrast with other countries, pointing out that while the EU holds companies accountable, others fall short.

“Consumers are left in an untenable situation: use VPNs to access necessary and desired content or lose out. Regulators need to take a much more active stance in cracking down on companies unlawfully using geoblocks to pad their profits,” she argues.

This stark reality leaves many people struggling with inconvenient and sometimes legally questionable workarounds just to access content that should be readily available.

Reflecting on her own experience, she adds, “As a Canadian, I view EU regulators' actions with appreciation, but (also) envy as Canadian consumer regulators have not taken the same tough approach with technology companies here”. Without the same user protections, consumers beyond Europe are left vulnerable to geo-blocking, facing restricted access and an unequal digital landscape.