Technology Transfer Block Exemption Regulation
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.
Our current consultation sets out to gather views before we consult on our proposed recommendation in December 2024.
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’ regulation 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 is also considering the Technology Transfer Guidelines that accompany the existing EU TTBER in its review of the Assimilated TTBER.
The CMA has already carried out reviews of the Assimilated Vertical Block Exemption Regulation, Horizontal Block Exemption Regulation, Motor Vehicle Block Exemption Regulation and Liner Shipping Consortia Block Exemption Regulation.
The CMA is currently carrying out a review of the Assimilated Rail, Road and Inland Waterway Transport Block Exemption Regulation.
We want to hear from you
The CMA welcomes views from stakeholders on considerations relating to the application of the Assimilated TTBER in the UK.
The information stakeholders provide in response to this call for inputs will help inform our draft recommendation to government, which will be subject to public consultation.
The CMA welcomes responses to this call for inputs, in particular from:
- businesses with operations in the UK that rely on the Assimilated TTBER and the Technology Transfer Guidelines
- law firms and other advisers advising businesses on the application of competition law to technology transfer agreements in the UK
- industry associations
- consumer organisations with an interest in the UK market
Responding to our consultation
To get in touch to provide views on the Assimilated TTBER, or to register your interest in this review, please contact us at ttberreview@cma.gov.uk
The call for inputs will run until 6 September 2024.
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.
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.
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.
