The Economic Impact of Removing GEO-Blocking Restrictions in the EU Digital Single Market

Néstor Duch-Brown, Bertin Martens; The Economic Impact of Removing Geo-blocking Restrictions in the EU Digital Single Market. Institute for Prospective Technological Studies, Joint Research Centre. Digital Economy Working Paper 2016/02

40 Pages Posted: 26 May 2016

See all articles by Néstor Duch-Brown

Néstor Duch-Brown

Joint Research Centre - European Commission

Bertin Martens

Joint Research Centre

Date Written: May 24, 2016

Abstract

This study investigates the welfare impact of lifting geo-blocking restrictions to cross-border e-commerce in the EU, using a dataset for consumer electronics products in ten European countries for the period 2012-2105. We simulated two counterfactual scenarios where geo-blocking is either fully or only indirectly removed. This would allow consumers to arbitrage, taking advantage of price differences, and to expand product variety through imports. We computed the welfare effects, as changes in both consumer and producer surpluses. Finally, we extrapolated these partial results to all online sales in the EU28. The results indicate that both consumers and producers would gain from removing geo-blocking restrictions. Smaller countries would benefit comparatively more than larger countries.

Keywords: cross-border e-commerce, geo-blocking, digital single market

JEL Classification: D12

Suggested Citation

Duch-Brown, Néstor and Martens, Bertin, The Economic Impact of Removing GEO-Blocking Restrictions in the EU Digital Single Market (May 24, 2016). Néstor Duch-Brown, Bertin Martens; The Economic Impact of Removing Geo-blocking Restrictions in the EU Digital Single Market. Institute for Prospective Technological Studies, Joint Research Centre. Digital Economy Working Paper 2016/02, Available at SSRN: https://ssrn.com/abstract=2783647 or http://dx.doi.org/10.2139/ssrn.2783647

Néstor Duch-Brown (Contact Author)

Joint Research Centre - European Commission ( email )

Edificio Expo, C
Inca Garcilaso, 3
Sevilla, E-41092
Spain

Bertin Martens

Joint Research Centre ( email )

Edificio Expo, C
Inca Garcilaso, s/n
Sevilla, E-41092
Spain

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