Rail, Road and Inland Waterway Transport Block Exemption Regulation
The CMA is reviewing the Rail, Road and Inland Waterway Transport Block Exemption Regulation
The CMA is reviewing the Rail, Road and Inland Waterway Transport Block Exemption Regulation (‘RRIWTBER’) to inform its recommendation to government on whether to vary or revoke it and, if revocation is recommended, whether to replace it with a new block exemption order.
Administrative timeline
| Date | Action |
|---|---|
| September 2024 (estimated) | CMA’s final recommendation to Secretary of State for Business and Trade |
| June 2024 (estimated) | Consultation on CMA’s proposed recommendation to Secretary of State for Business and Trade |
| 11 March 2024 | Call for inputs |
11 March 2024: The CMA has issued a Call for Inputs to enable interested parties to share their views, in particular on any UK-specific issues relating to the RRIWTBER. The Call for Inputs runs until 5pm on 10 April 2024.
- Rail, Road and Inland Waterway Transport Block Exemption Regulation consultation (11.3.24)
- (11.3.24)
Context
The Competition Act 1998 prohibits agreements between businesses that restrict competition in the UK (unless they meet the conditions for exemption in section 9(1) of the Competition Act 1998 or are otherwise excluded). This is known as the Chapter I prohibition.
An agreement can be exempt from the Chapter I prohibition on the basis that it produces benefits which outweigh its impact on competition. 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.
A block exemption regulation automatically exempts agreements of a certain category from the Chapter I prohibition if the agreement satisfies the conditions set out in the block exemption regulation. In this way, a block exemption regulation provides legal certainty for businesses.
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. For details on what these 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’ on 1 January 2024.
The RRIWTBER therefore forms part of UK competition law as an assimilated block exemption, subject to certain amendments that were made as part of the EU withdrawal process. A copy of the instrument is available for review.
The RRIWTBER automatically exempts two categories of agreements insofar as they meet certain conditions set out in the RRIWTBER:
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certain agreements relating to technical improvements or technical cooperation in the fields of rail, road and inland waterways
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certain agreements the purpose of which is the constitution and operation of groupings of small or medium-sized road or inland waterway transport undertakings with a view to carrying on transport activities and related agreements concerning the joint financing or acquisition of transport equipment or supplies
The CMA’s review of the RRIWTBER
The CMA’s review will assess whether the RRIWTBER is fit for purpose and will take account of any specific features of the UK economy and the interests of UK businesses and consumers.
The information stakeholders provide in response to this Call for Inputs will help inform a proposed recommendation to government, on which we would consult.
Background
The CMA is reviewing the RRIWTBER for the purpose of making a recommendation to the Secretary of State in accordance with the Competition Act 1998 about whether to vary or revoke the RRIWTBER and, if it is to be revoked, whether to replace it with a new block exemption order.
In accordance with the Competition Act 1998, the CMA has a role in advising the Secretary of State for Business and Trade (Secretary of State) on the making of new block exemptions and varying or revoking existing assimilated block exemption regulations.
The CMA has completed reviews of a number of retained/assimilated block exemption regulations, most recently the Liner Shipping Consortia Block Exemption Regulation. The CMA will be reviewing the remaining assimilated block exemption regulation, the Technology Transfer Block Exemption Regulation, in due course in order to make a recommendation to the Secretary of State.
Personal data
When handling personal data (like your contact details), we comply with data protection law, as set out in the UK GDPR 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.