Horizontal Co-Operation Agreements Subject To Revised EU Guidance

On 1 June 2023, the European Commission published its new block exemption regulations on research and development (R&D) and specialisation agreements, collectively referred to as the Horizontal Block Exemption Regulations ("HBERs"). Simultaneously, it published its revised Guidelines on horizontal co-operation with competitors ("Guidelines").

Simply put, the HBERs exempt certain R&D and specialisation agreements from the prohibition on anti-competitive agreements under Article 101(1) on the Treaty on the Functioning of the European Union ("TFEU") by providing a 'safe harbor'. Collectively, the revised HBERs and Guidelines provide businesses with clearer and up-to-date guidance to help them self-assess the compatibility of their horizontal cooperation agreements with EU competition rules. The revisions included therein primarily relate to digital advances, and the impact of antitrust law on initiatives which seek to promote sustainability.