Geoblocking ban in Switzerland

In the spring session of 2021, the Swiss Parliament adopted the indirect counterproposal to the initiative “Stop the high price island – for fair prices”. The resulting revision of the Federal Act against Unfair Competition (UCA) means that geoblocking will be prohibited in Switzerland in the future. For companies, this means new, extended duties of conduct and possibly additional legal risks due to civil lawsuits.

Geoblocking refers to a regional blocking or blocking of Internet content by the provider or operator of an online service. This means that IP addresses originating from a certain country can be blocked from accessing certain websites. Unlike EU citizens, Swiss consumers have not been protected from so-called geo-discrimination until now. Thus, it is often the case that a Swiss consumer cannot purchase a product from a foreign website at foreign prices. In most cases, the consumer is redirected to the Swiss website, where higher prices are then charged for the same products. In this way, the provider has been able to siphon off the purchasing power of Swiss customers directly.

In the future, the revision of the Federal Act against Unfair Competition is intended to prevent discrimination against Swiss consumers based on geoblocking. This means that companies or website operators who continue to make use of geoblocking can be held accountable in civil proceedings. Accordingly, the revision aims to ensure that Swiss consumers are treated exactly the same as foreign consumers. On the other hand, parliament has dispensed with a direct delivery obligation to Switzerland. Thus, the companies still have a way of exploiting the purchasing power of Swiss customers to a certain extent.

Exceptions to the geo-blocking ban are foreseen in the area of non-economic services of general interest, financial services or public transport, gambling, private security services or social services, and audiovisual services.

The revision should presumably enter into force by the end of the year. In view of the revision, companies are advised to check their online offer for possible geodiscrimination in order not to expose themselves to the risk of civil proceedings.