The European Union has filed antitrust charges against Sky's UK arm and six major US film firms, Disney, Warner Bros, NBCUniversal, Paramount Pictures, Sony, and Twentieth Century Fox for their alleged geo-blocking of content.
The companies are accused by the EU of allegedly unfair licensing agreements between Sky and the TV and film companies.
The agreements between the parties require Sky UK to block access to films through its online or satellite payment services, withholding access for some EU customers based on their location.
Competition commissioner Margrethe Vestager said in a statement: "European consumers want to watch the pay-TV channels of their choice regardless of where they live or travel in the EU."
"Our investigation shows that they cannot do this today, also because licensing agreements between the major film studios and Sky UK do not allow consumers in other EU countries to access Sky's UK and Irish pay-TV services, via satellite or online."