European Commission – Update Of Competition Rules On Technology Transfer Agreements

The European Commission has adopted revised rules governing the application of EU competition law to technology transfer agreements, namely the updated Technology Transfer Block Exemption Regulation (“TTBER”) and accompanying Guidelines. These instruments set out the conditions under which technology licensing agreements may be exempted from the prohibition of anti-competitive agreements under Article 101 of the Treaty on the Functioning of the European Union (“TFEU”) and provide guidance for agreements falling outside the safe harbour.

Technology transfer agreements, through which undertakings license intellectual property rights such as patents, design rights or software, are generally considered to promote the dissemination of technology and incentivise innovation. However, certain restrictions embedded in such agreements may give rise to competition concerns. In this context, the revised framework aims to ensure legal certainty while reflecting evolving market dynamics,