The European Union today stepped in to prevent France from adopting a decree similar to the Unlawful Internet Gambling Enforcement Act in the U.S. Had the draft decree been adopted, it would have obliged French financial institutions to block payments from online gaming companies black-listed by French authorities.
The EU moved quickly to issue a “detailed opinion” which prevents France from adopting the decree before Mar. 31, 2008. If they adopt it after this date, the EU can then launch infringement proceedings.
Sigrid Ligné, secretary general of the European Gaming and Betting Association, welcomed the move. “Today's action consolidates the Commission’s position that unjustified payment blocking in our sector clearly contravenes EU law. We welcome the Commission’s action and hope that this will send a clear signal to other EU and EFTA Member States that such proposals will not be tolerated.”
Other EU countries, including Germany, Norway, and the Netherlands are considering similar restrictions, but as demonstrated by the U.S experience “such restrictions are difficult to implement, easy to circumvent, inefficient, and foster the growth of an underground market,” said Ligné.
