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Posts Tagged ‘Trade Barriers Regulation’

EU investigation into US DOJ actions

Tuesday, March 11th, 2008

The US went crazy on Gaming back in 2006 when it enforced the Unlawful Internet Gambling Enforcement Act (UIGEA).  This basically knocked huge amounts of worth off Internet gaming companies overnight.  The resulting aftermath saw companies swallow each other up in an effort to retain at least some of the global gaming market.

The European Union has today announced an investigation into the actions of the US Department of Justice in its own ongoing investigations into EU-based gaming sites.  Eventually this could lead to a World Trade Organisation investigation and directive aimed squarely at the US.  This investigation is a result of a complaint by the Remote Gaming Association (RGA) made to the European Commission in December 2007.

The basics as I understand it are that the US had commitments to allow EU-based gaming sites to operate in the US under WTO regulations.  The complaint rests on the fact that the US is allegedly, selectively applying regulations to non-US gaming companies anf therefore violating WTO regulations relating to market access for internation suppliers.

In the long term this could lead to a re-opening of the US market but this is very unlikely.  Let’s face it, if the US wants to restrict foreign suppliers of anything, they won’t be told what to do.  A more likely outcome is a more transparent process of restriction and a cessation of DOJ investigation into non-US gaming companies.

The original press release by the European Commission can be found here: Trade Barriers Regulation