Sales practices: geo-blocking and territorial segmentation of the market becoming more difficult in Luxembourg

Since 3 December 2018, EU Regulation 2018/302 on addressing unjustified geo-blocking and other forms of discrimination based on customers’ nationality, place of residence or place of establishment within the internal market has been directly effective in the European Union. It expressly forbids traders (distributors and retailers) from imposing a series of geographical restrictions on customers (business and consumers) within the EU and is significant in going beyond the existing competition law and consumer protection framework.

In order to make the provisions of the Geo-blocking Regulation fully applicable in  Luxembourg, the Luxembourg Parliament is currently studying a draft bill which among others gives businesses and consumers the possibility of asking the court to order injunctions against companies in Luxembourg which engage in geographic restrictions. This legislation should be adopted over the coming months.

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