Technology Transfer Block Exemption Regulation

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The Competition and Markets Authority's (CMA) purpose is to help people, businesses and the UK economy by protecting competition and tackling unfair behaviour.

About this consultation

The CMA is reviewing the assimilated Technology Transfer Block Exemption Regulation (the Assimilated TTBER) to inform the CMA’s recommendation to government on whether to replace the Assimilated TTBER on its expiry on 30 April 2026.

Consultation on the CMA's Proposed Recommendation on the Assimilated TTBER

14 March 2025: The Competition and Markets Authority (CMA) is consulting on its proposed recommendation (the Proposed Recommendation) to the Secretary of State for Business and Trade regarding the Assimilated Technology Transfer Block Exemption Regulation (the Assimilated TTBER), which expires on 30 April 2026. The Assimilated TTBER exempts certain types of technology transfer agreements from the Chapter I prohibition of the Competition Act.

In the Proposed Recommendation, the CMA proposes to recommend that the Secretary of State make a block exemption order of 12 years’ duration that exempts the categories of technology transfer agreements currently exempted by the Assimilated TTBER, and which includes the same definitions, conditions and obligations as the Assimilated TTBER (adapted as necessary for UK purposes), but with the following variations:

  • removing ‘utility models’ from the definition of ‘technology rights’;
  • adding ‘copyright in a database’ and ‘database rights’ to the definitions of ‘technology rights’ and ‘intellectual property rights’;
  • adding definitions of ‘active sales’ and ‘passive sales’; and
  • replacing the market share thresholds in respect of technology markets with a condition that there be at least three independently controlled substitutable technologies in addition to the technologies held by the parties to the agreement.

The CMA has prepared the Proposed Recommendation having regard, among other things, to responses to the Call for Inputs on the Assimilated TTBER, which ran from midday on 26 July 2024 to 5pm on 6 September 2024. These responses have been published on the Call for Inputs page.

Responding to our consultation

To get in touch to provide views on the Proposed Recommendation please contact us at ttberreview@cma.gov.uk.

The consultation will run until 11 April 2025.

In accordance with our policy of openness and transparency, we may publish non-confidential versions of responses to the consultation on the Proposed Recommendation, or a summary of those 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.

The responses to the present call for inputs may also be shared with the Department for Business and Trade in order to facilitate consideration of the CMA’s recommendation.

Context

The Competition Act 1998 (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. Ordinarily, businesses must make their own assessment of whether an agreement which restricts competition can be justified based on its benefits.

In certain cases, it may be clear that all agreements in a particular category are likely to be exempt agreements. In these circumstances, a ‘block exemption’ may be made to automatically exempt agreements in that category provided that they satisfy the conditions set out in the block exemption. In this way, a ‘block exemption’ order provides legal certainty for businesses.

The Assimilated TTBER automatically exempts certain types of technology transfer agreements from the Chapter I prohibition insofar as those agreements meet certain conditions set out in the Assimilated TTBER. A ‘technology transfer agreement’ for these purposes is an agreement in which one party authorises another to use certain industrial property rights (such as patents, design rights, software copyrights and know-how) for the production of goods or services.


Background

Following the UK’s exit from the EU, the EU block exemption regulations that were in force under EU law at the end of the Transition Period on 31 December 2020 were retained in UK law and are known as assimilated block exemption regulations. An agreement is exempt from the Chapter I prohibition if it falls within a category of agreements specified as exempt in an assimilated block exemption regulation. For details on what the assimilated block exemptions cover, see Guidance on the functions of the CMA after the end of the Transition Period (paragraphs 4.31 to 4.36). Under the Retained EU Law (Revocation and Reform) Act 2023, what was previously ‘retained EU law’ became ‘assimilated law’ at the end of 2023.

The Assimilated TTBER therefore forms part of UK competition law as an assimilated block exemption regulation, subject to certain amendments that were made as part of the EU withdrawal process. A copy of the instrument is available for review.

In accordance with the CA98, the CMA has a role in advising the Secretary of State for Business and Trade (previously the Secretary of State for Business, Energy and Industrial Strategy) on the making of new block exemptions and varying or revoking assimilated block exemption regulations.

The CMA has already carried out reviews of the Assimilated Vertical Block Exemption Regulation, Horizontal Block Exemption Regulation, Motor Vehicle Block Exemption Regulation, Liner Shipping Consortia Block Exemption Regulation and Rail, Road and Inland Waterway Transport Block Exemption Regulation.

Your personal data

When handling personal data (like your contact details), we comply with data protection law, as set out in the UK General Data Protection Regulation and the Data Protection Act 2018 and other law designed to protect sensitive information.

For more information about the CMA’s statutory functions, how the CMA processes personal data and your rights relating to that personal data (including your right to complain), please visit the CMA’s Personal Information Charter.

The Competition and Markets Authority's (CMA) purpose is to help people, businesses and the UK economy by protecting competition and tackling unfair behaviour.

About this consultation

The CMA is reviewing the assimilated Technology Transfer Block Exemption Regulation (the Assimilated TTBER) to inform the CMA’s recommendation to government on whether to replace the Assimilated TTBER on its expiry on 30 April 2026.

Consultation on the CMA's Proposed Recommendation on the Assimilated TTBER

14 March 2025: The Competition and Markets Authority (CMA) is consulting on its proposed recommendation (the Proposed Recommendation) to the Secretary of State for Business and Trade regarding the Assimilated Technology Transfer Block Exemption Regulation (the Assimilated TTBER), which expires on 30 April 2026. The Assimilated TTBER exempts certain types of technology transfer agreements from the Chapter I prohibition of the Competition Act.

In the Proposed Recommendation, the CMA proposes to recommend that the Secretary of State make a block exemption order of 12 years’ duration that exempts the categories of technology transfer agreements currently exempted by the Assimilated TTBER, and which includes the same definitions, conditions and obligations as the Assimilated TTBER (adapted as necessary for UK purposes), but with the following variations:

  • removing ‘utility models’ from the definition of ‘technology rights’;
  • adding ‘copyright in a database’ and ‘database rights’ to the definitions of ‘technology rights’ and ‘intellectual property rights’;
  • adding definitions of ‘active sales’ and ‘passive sales’; and
  • replacing the market share thresholds in respect of technology markets with a condition that there be at least three independently controlled substitutable technologies in addition to the technologies held by the parties to the agreement.

The CMA has prepared the Proposed Recommendation having regard, among other things, to responses to the Call for Inputs on the Assimilated TTBER, which ran from midday on 26 July 2024 to 5pm on 6 September 2024. These responses have been published on the Call for Inputs page.

Responding to our consultation

To get in touch to provide views on the Proposed Recommendation please contact us at ttberreview@cma.gov.uk.

The consultation will run until 11 April 2025.

In accordance with our policy of openness and transparency, we may publish non-confidential versions of responses to the consultation on the Proposed Recommendation, or a summary of those 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.

The responses to the present call for inputs may also be shared with the Department for Business and Trade in order to facilitate consideration of the CMA’s recommendation.

Context

The Competition Act 1998 (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. Ordinarily, businesses must make their own assessment of whether an agreement which restricts competition can be justified based on its benefits.

In certain cases, it may be clear that all agreements in a particular category are likely to be exempt agreements. In these circumstances, a ‘block exemption’ may be made to automatically exempt agreements in that category provided that they satisfy the conditions set out in the block exemption. In this way, a ‘block exemption’ order provides legal certainty for businesses.

The Assimilated TTBER automatically exempts certain types of technology transfer agreements from the Chapter I prohibition insofar as those agreements meet certain conditions set out in the Assimilated TTBER. A ‘technology transfer agreement’ for these purposes is an agreement in which one party authorises another to use certain industrial property rights (such as patents, design rights, software copyrights and know-how) for the production of goods or services.


Background

Following the UK’s exit from the EU, the EU block exemption regulations that were in force under EU law at the end of the Transition Period on 31 December 2020 were retained in UK law and are known as assimilated block exemption regulations. An agreement is exempt from the Chapter I prohibition if it falls within a category of agreements specified as exempt in an assimilated block exemption regulation. For details on what the assimilated block exemptions cover, see Guidance on the functions of the CMA after the end of the Transition Period (paragraphs 4.31 to 4.36). Under the Retained EU Law (Revocation and Reform) Act 2023, what was previously ‘retained EU law’ became ‘assimilated law’ at the end of 2023.

The Assimilated TTBER therefore forms part of UK competition law as an assimilated block exemption regulation, subject to certain amendments that were made as part of the EU withdrawal process. A copy of the instrument is available for review.

In accordance with the CA98, the CMA has a role in advising the Secretary of State for Business and Trade (previously the Secretary of State for Business, Energy and Industrial Strategy) on the making of new block exemptions and varying or revoking assimilated block exemption regulations.

The CMA has already carried out reviews of the Assimilated Vertical Block Exemption Regulation, Horizontal Block Exemption Regulation, Motor Vehicle Block Exemption Regulation, Liner Shipping Consortia Block Exemption Regulation and Rail, Road and Inland Waterway Transport Block Exemption Regulation.

Your personal data

When handling personal data (like your contact details), we comply with data protection law, as set out in the UK General Data Protection Regulation and the Data Protection Act 2018 and other law designed to protect sensitive information.

For more information about the CMA’s statutory functions, how the CMA processes personal data and your rights relating to that personal data (including your right to complain), please visit the CMA’s Personal Information Charter.

Page last updated: 18 Mar 2025, 01:49 PM