The European Union has decided to demand that Apple end its geoblocking practices, which limit the availability of certain apps and services based on the user’s country of residence. The EU’s intention is for European users to access the same services and applications, regardless of their country of origin within the region. The demands, although undoubtedly well-intentioned, ignore decades of international agreements on distribution rights and content licenses, and seem to lack a complete understanding of established practices.
Geoblocking is there for a reason
First of all, it should be clarified that although the demands are directed at Apple, the Cupertino company is one of the thousands that use these systems. The requests, therefore, have a much broader scope and should not give us the impression at any time that Apple is acting differently from the BBC, for example.
The demands are divided into three points: being able to use the same interface in other countries, using credit cards registered in other countries, and being able to download applications not available in certain countries.
Let’s start with the first point: European users should be able to use the same interface, regardless of the country in which they are registered. An extremely ambiguous point. The interface of Apple’s apps is practically identical in all countries, although, of course, there are differences in content or services due to legal restrictions or commercial agreements. In the case of Apple Music, for example, the application is the same worldwide, but the music catalog varies according to distribution rights in each region, something that has nothing to do with Apple, but with the laws and agreements governing intellectual property.
The second requirement refers to the possibility of using credit cards or payment methods from other countries. It seems reasonable, but the truth is that companies must comply with the financial and security regulations of each country, which greatly complicates the acceptance of cross-border payments. The ability to use a payment method from a specific country is, in fact, one of the ways platforms verify that a user has residency or at least a significant connection with the country in question. This supports the previous point, as otherwise, many would use the U.S. version of Netflix or Disney+ to access a broader catalog.
The third point is, without a doubt, the most surprising: the requirement to allow the download of applications from other countries. The rights to distribute content, whether in the form of TV shows, movies, or applications, are based on agreements and contracts that can vary widely from one country to another. Hulu, Disney’s streaming platform, is not in Spain for example, and this is partly because Disney has not launched the application in the Spanish App Store.
This last requirement, perhaps seemingly simple, would appear to want to force developers to be present in markets where they do not wish to operate. The reasons for this absence? There can be several, but the most common are the need to comply with the laws and requirements of all the countries where their application is available. This includes complying with tax laws, copyright laws, and content regulations that vary considerably between regions. Something that not many developers want to take on. What happens if we remove geoblocking from the App Store and a developer wants their app to only be available in France?
It is undeniable that the EU has proven to be a pioneer in regulating certain matters, but here its stance seems to ignore the reality of a world where intellectual property rights are treated differently in each territory. Beyond everything, it should be remembered that, at Apple, we have the possibility to create more than one Apple account and associate them with different countries or regions.
Additionally, Apple allows changing the region or country of an Apple account as long as there is a valid payment method for the new country. This method allows access to content and applications from other regions. Switching from one account to another is as simple as going to the Settings app.
As we started by saying, the intention of the European Union is commendable, to make it easier to move between services and content. The way of demanding it, however, by asking one of the thousands of companies operating in Europe to remove restrictions that by law must be in place, does not seem the best way. While Google has just lost one of the longest antitrust lawsuits in the European Union, the conversation about copyright and content distribution should go through a much broader view of the situation.
