Retained Block Exemptions
Published 10 February 2021
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The EU block exemption regulations exempt certain types of agreements from EU competition law where there are benefits for consumers.
The EU block exemptions were retained in UK law at the end of the Transition Period, along with their expiry dates. They were amended to function as exemptions from UK competition law.
On or before their expiry date, the Secretary of State may vary, revoke or replace the block exemptions, acting in consultation with the Competition and Markets Authority.
The vertical agreements block exemption will expire first, on 31 May 2022. The CMA has today announced it is reviewing the vertical block exemption. The purpose of this review is to ensure that the block exemption still delivers the intended benefits for UK businesses and consumers. The other block exemptions will be reviewed in due course.
List of retained block exemptions and expiry dates
| Category of exemption | Expiry date |
|---|---|
| Vertical agreements | 31 May 2022 |
| Research and development agreements (horizontal cooperation) | 31 December 2022 |
| Specialisation agreements (horizontal cooperation) | 31 December 2022 |
| Motor Vehicle vertical agreements | 31 May 2023 |
| Liner shipping consortia agreements | 25 April 2024 |
| Technology transfer agreements | 30 April 2026 |
| Rail, road and inland waterways transport | No expiry date |
Background
The EU block exemptions were retained in UK law by the European Union (Withdrawal) Act 2018 at the end of the Transition Period. They were amended[footnote 1] so that they function as exemptions from UK competition law.
The Secretary of State has the power to vary or revoke the retained block exemptions[footnote 2]. The Secretary of State also has the power to make a domestic “block exemption order”[footnote 3].
The Competition and Markets Authority must make a recommendation to, or be consulted by, the Secretary of State before these powers are exercised.
Contact
For questions about the policy: competition@beis.gov.uk
References
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Paragraphs 3 and 4 of Part 2 of, and Part 2 to Schedule 4 to, the Competition (Amendment etc.) (EU Exit) Regulations 2019 (amended by the Competition (Amendment etc.) (EU Exit) Regulations 2020). ↩
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Section 10A of the Competition Act 1998 as inserted by the 2019 Regulations. ↩
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Section 6 of the Competition Act 1998. ↩