BRUSSELS—Paramount studios has backed away from enforcing geoblocking clauses in its Sky TV contracts.

European customers wanting to watch the new Star Trek movie—or reruns of old Indiana Jones—as soon as it hits Sky’s online TV or satellite service will no longer receive a notice that reads: “this content is not available in your country.”

Last July, the European Commission warned Paramount, and five other movie studios—Disney, NBCUniversal, Sony, Twentieth Century Fox, and Warner Bros—that they may be in breach of EU competition rules due to clauses in their film licensing contracts with Sky in the UK.

These clauses blocked Sky from letting customers outside the UK and Ireland watch Paramount’s films via satellite or online. Likewise they required Paramount to ensure that other broadcasters could not show its films in the UK and Ireland.

According to the commission: “Such clauses restrict the ability of broadcasters to accept unsolicited requests (so-called passive sales) for their pay-TV services from consumers located outside their licensed territory. The commission had concerns that this may eliminate cross-border competition between pay-TV broadcasters and partition the EU’s Single Market along national borders.”

In April, Paramount promised to stop including these clauses for the next five years, and said it would not enforce its existing ones. Having consulted with the market, Brussels' officials have now accepted these commitments, and made them legally binding. If Paramount breaks its promises, it faces a fine of up to 10 percent of its global annual turnover.

The commission’s investigation into the five other studios continues.