That’s not quite the situation here. The EU is preventing price discrimination within the EU. Price discrimination is generally disallowed in the EU single market. This is intended to foster greater synergies and efficiencies of scale, as opposed to current international trade agreements which are slow to form, and even slower to update as necessary. Part of the single market is the requirement that products and services not discriminate solely on the basis of nationality. Companies are permitted to charge differing amounts based on location and channel, but every consumer in the EU must have the right to purchase that product or service at that location or channel for the same price.
The single market has been one of the major economic drivers for success in the EU, ensuring poor countries have been able to quickly catch up with developed nations. Poor nations can charge developed nation prices for their products and services without risk of systemic barriers or anti-competitive arbitrage. Software is no different. Harmonised access maximises competition, promotes growth, and keeps aggregate prices low. The cost is that prices will rise in some EU nations, as they fall in others.
The EU is preventing price discrimination within the EU.
They do have that requirement as part of the Digital Markets Act, but I don’t believe that that’s what the case here is addressing. That is not what the article OP posted or the article I linked to is saying: they are specifically saying that what is at issue is sales outside Europe.
EDIT: I am thinking that maybe the article is just in error. I mean, just from an economic standpoint, the EU doing this would create a major mess for international companies.
EDIT2: Okay, here’s an archive.ph link of the original Bloomberg article:
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That’s not quite the situation here. The EU is preventing price discrimination within the EU. Price discrimination is generally disallowed in the EU single market. This is intended to foster greater synergies and efficiencies of scale, as opposed to current international trade agreements which are slow to form, and even slower to update as necessary. Part of the single market is the requirement that products and services not discriminate solely on the basis of nationality. Companies are permitted to charge differing amounts based on location and channel, but every consumer in the EU must have the right to purchase that product or service at that location or channel for the same price.
The single market has been one of the major economic drivers for success in the EU, ensuring poor countries have been able to quickly catch up with developed nations. Poor nations can charge developed nation prices for their products and services without risk of systemic barriers or anti-competitive arbitrage. Software is no different. Harmonised access maximises competition, promotes growth, and keeps aggregate prices low. The cost is that prices will rise in some EU nations, as they fall in others.
They do have that requirement as part of the Digital Markets Act, but I don’t believe that that’s what the case here is addressing. That is not what the article OP posted or the article I linked to is saying: they are specifically saying that what is at issue is sales outside Europe.
EDIT: I am thinking that maybe the article is just in error. I mean, just from an economic standpoint, the EU doing this would create a major mess for international companies.
EDIT2: Okay, here’s an archive.ph link of the original Bloomberg article:
https://archive.ph/JuM0z#selection-4849.212-4863.277
Yeah, so it’s just that these “mezha.media” guys mis-summarized the Bloomberg article.
Your edits are correct. The mezha.media site most likely misinterpreted the presser.
This is the 2021 ruling if you’d like more info. Valve just lost the appeal.