Application of the Chapter I Prohibition in the Competition Act 1998 to Technology Transfer Agreements

Overview

The CMA is launching its consultation on draft guidance on the application of the Chapter I prohibition in the Competition Act 1998 (CA98) to technology transfer agreements.

The purpose of the draft guidance under consultation is to explain how the CMA applies the Chapter I prohibition to technology transfer agreements.

Background

The draft guidance in particular describes the application of the Technology Transfer Block Exemption Order 2026 (the TTBEO), in order to help businesses assess whether technology transfer agreements fall within the scope of the TTBEO.

The TTBEO, which enters into force on 1 May 2026, reflects (subject to some minor modifications) the CMA’s 30 September 2025 Final Recommendation to the Secretary of State for Business and Trade that he replace the Assimilated Technology Transfer Block Exemption Regulation with a UK block exemption order.

The CA98 prohibits agreements between businesses that restrict competition in the UK (unless they meet the conditions for exemption in section 9(1) of the CA98 or are otherwise excluded). This is known as the Chapter I prohibition.

An agreement is exempt from the Chapter I prohibition if it creates sufficient efficiencies and benefits to outweigh any anti-competitive effects. A ‘block exemption’ exempts whole categories of agreements on the basis that agreements within the category would be likely to be treated as exempt if they were assessed individually. If an agreement meets the conditions set out in a block exemption, it is automatically exempt.  In this way, a block exemption provides legal certainty for businesses.

How we handle responses

In accordance with our policy of openness and transparency, we will publish non-confidential versions of responses on our webpages. If your response contains any information that you regard as sensitive and that you would not wish to be published, please provide at the same time a non-confidential version for publication on our webpages which omits that material and which explains why you regard it as sensitive. When submitting your response please also let us know if you wish to remain anonymous.