“Apologies, not available in your country!” is a frequent experience for Maltese consumers. An e-commerce Europe barometer reveals that two in three cross-border shopping attempts in the EU fail due to restrictions or re-routing of customers based on discrimination on grounds of nationality or residence.On the business side, Commission findings reveal that while 65 per cent of consumers buy online, only 16 per cent of SMEs sell online and only 7.5 per cent of SMEs sell online across borders.

This phenomenon of geo-blocking was discussed recently in a stakeholders dialogue with MEP Therese Comodini Cachi, organised by the Malta Business Bureau and the European Parliament Information Office.

The European Parliament and the Council are negotiating new legislation to address geo-blocking and prohibit restrictions by traders and re-routing practices online. However, the Commission proposal, while meant to lead to a wider consumer choice, is not without problems to businesses.

Malta needs to take a closer look at the inherent inhibitions of companies to go online

Erwan Bertrand from Eurochambres expressed the concern of European businesses as to the effectiveness of the proposed Commission measures in widening cross-border trade. Mr Bertrand pointed out that while Union legislation may try to prohibit certain commercial practices, other limitations remain, including different technical requirements, language barriers and transport costs. “We would have preferred not to need any proposal on geoblocking, as this is a symptom of a still highly incomplete Single Market,” he said.

Comodini Cachia is the rapporteur on the copyright Directive and is involved in the ongoing negotiations in the European Parliament. She pointed out that while there was a need to unblock the internet’s potential in Europe, Malta needed to take a closer look at the inherent inhibitions of companies to go online – especially the prohibitive transport costs for these to offer their goods and service abroad.

“Within the Maltese scenario I see a number of local traders trying to taking the digital plunge but they face steep barriers among which postal costs.  We need to help them address these barriers which are limiting their power to compete online,” she said.