SaaS Price Discrimination in EU FAQ.

by Jules Maregiano · March 3, 2022

Is it illegal to offer different prices to countries of the Eurozone. We dived into the European regulations so you don’t have to.

Is it illegal to sell the same SaaS subscription at different prices in countries of the Eurozone?

Yes. It’s illegal. Selling the same exact subscription at different prices based on the location of your customers within the Eurozone is illegal. According to the official EU website:

"[...] there is no possible justification for differences in access to goods or services for customers from different EU countries in the following [...] situations: [...] sale of electronically supplied services (excluding copyright protected content) – such as cloud computing services or website hosting"

Read the full article.

How do companies like Spotify, Steam, or Netflix, manage to sell using regional pricing?

That’s because they are copyright-protected content. Copyright-protected content such as movies, video games, music, etc. is subjected to copyright laws that work on a regional basis. If ABC company owns the rights to XYZ movie in Germany, another owner might own the rights in Spain.

What about physical products?

Physical products (and services) can be sold at different prices based on the buyer’s location if there’s a justification for the price change. Justifications are most of the time shipping costs. There are no customs duties within the EU so this is not a possible justification.

Products provided in a specific location (plane tickets), or without physical delivery (click&collect), are considered subject to no possible justification, and therefore can not be sold at different prices to EU citizens or companies.

Jules Maregiano

Jules studied export and was in charge of marketing a fast-growing SaaS. He created exportator after realizing the power of PPP for digital sales growth and to make the web cool again.

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