# The Competition Act 1998 (Technology Transfer Agreements Block Exemption) Order 2026, Note: Explanatory note


(This note is not part of the Order)
This Order is a block exemption Order under section 6 of the Competition Act 1998 (c. 41) (“the Act”). It gives effect to the recommendation of the Competition and Markets Authority (“CMA”) that certain technology transfer agreements (as defined in article 3(2) of the Order) constitute a category of agreements which are likely to be exempt from the prohibition against anti-competitive agreements in Chapter 1 of Part 1 of the Act (“the Chapter I prohibition”).
The Order replaces assimilated Commission Regulation (EU) No. 316/2014 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of technology transfer agreements (EUR 2014/316) (“the assimilated TTBER”), which expires at the end of 30th April 2026.
Under article 3 of the Order, technology transfer agreements are specified for the purposes of section 6 of the Act, with the effect that a block exemption from the Chapter 1 prohibition applies to technology transfer agreements. The block exemption has effect in respect of a technology transfer agreement subject to the conditions and obligation referred to in article 4. These include conditions relating to market share and other thresholds (see article 5) and the inclusion of hardcore restrictions and excluded restrictions (see articles 7 and 8).
The block exemption will be cancelled in respect of a technology transfer agreement if—
there is a breach of a condition relating to the market share or other thresholds in article 5, although if the applicable market share condition in article 5(2) or (4) is met initially, and only subsequently breached, the breach has the effect of cancelling the block exemption in respect of the agreement but only with effect from the end of the period of three consecutive calendar years following the year in which the condition in question was first breached (see article 9(2));
a hardcore restriction is included in the agreement (see articles 7 and 9(1));
an excluded restriction is included in the agreement, although if the excluded restriction is severable from the agreement the block exemption is cancelled only in respect of the excluded restriction (see articles 8(1) and 9(3)).
In addition, the CMA may cancel the block exemption in respect of an agreement if: (i) a party to the agreement fails to comply with the obligation to provide information to it (see article 10), or (ii) the CMA considers that the agreement is not one which is exempt from the Chapter 1 prohibition as a result of section 9 of the Act (see article 11).
A transitional provision also ensures that the Chapter I prohibition does not apply for 12 months to pre-existing agreements which satisfied the conditions for exemption provided for in the assimilated TTBER but which do not otherwise satisfy the conditions for exemption provided for in this Order (see article 13).
The Order also corrects an omission in the Competition Act 1998 (Research and Development Agreements Block Exemption) Order 2022 (S.I. 2022/1271) by including a reference to Scottish procurement legislation in the definition of “passive sales”, to ensure the definition applies in relation to procurement by devolved Scottish authorities (see article 14).
The block exemption applies from 1st May 2026 (see article 1(1)) and will cease to have effect at the end of 31st December 2038 (see article 16).
A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.

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Source: https://www.legislation.gov.uk/uksi/2026/369/note (the official version)
Page: https://openlegislation.uk/competition-act-1998-technology-transfer-agreements-block-exemption-order-2026/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.