The Competition and Markets Authority (CMA) has published a call for inputs on the Assimilated Technology Transfer Block Exemption Regulation (TTBER) which is set to expire on 30 April 2026. The CMA will use the information gathered during this call for inputs to make a recommendation to the Secretary of State for Business and Trade about whether to replace and/or vary the TTBER when it expires.

But what is the TTBER, we hear you ask? Well, as you will know, the Competition Act 1998 is the piece of UK legislation which bans agreements which “have as their object or effect the prevention, restriction or distortion of competition within the UK”. This restriction is also known as the “Chapter 1 prohibition”.

However, there are exemptions to the Chapter 1 prohibition where the benefits and efficiencies of certain agreements are deemed to outweigh any anti-competitive effects. This is where the TTBER comes in - it exempts certain types of “technology transfer agreements” from the Chapter I prohibition, provided they meet specific conditions (relating to the market share thresholds of the parties) and do not contain any of the specified hardcore or excluded restrictions. 

To be clear, for the purpose of the TTBER, a “technology transfer agreement” is “an agreement in which one party (the licensor) assigns or licences the use of intellectual property rights (such as patents, design rights, software copyrights and know-how) to another party (licensee) for the production of goods or services”. 

As part of its call for inputs, the CMA will review stakeholder feedback in order to “assess whether the TTBER continues to meet its intended purpose and will take account of the any specific features of the UK economy and interests of businesses and consumers”. Specifically, the CMA has requested feedback on:

  1. Whether the benefits of the exemption in the TTBER continue to outweigh its potential harmful effects on competition
  2. The benefits of a block exemption (such as the TTBER) over self-assessment by businesses
  3. Any changes which could be made to the TTBER (or associated guidelines) to improve its effectiveness

Responses to the call for inputs should be submitted by 6 September 2024, following which the CMA will consults on its proposed recommendation in December 2024.