European Union: Issued report on evaluation of Technology Transfer Block Exemption Regulation

On 22 November 2024, the Commission released a staff working document evaluating Commission Regulation (EU) No 316/2014, which sets a block exemption for certain technology transfer agreements under Article 101(3) TFEU. The evaluation found that such agreements, covering patents, know-how and software, can stimulate innovation, promote technology diffusion and enhance competition, while also carrying risks of collusion or reduced incentives to innovate. The regulation exempts agreements that comply with market share thresholds and avoid prohibited restrictions, with guidelines offering additional clarity, including safe harbours and advice for cases outside the exemption. Drawing on consultations with stakeholders, national authorities, workshops and an external study, the assessment concluded that the regulation and guidelines largely meet their objectives. They help ensure that only agreements consistent with Article 101(3) benefit from the exemption, provide legal certainty, lower compliance costs, and promote consistent application across Member States, strengthening market integration. The evaluation also outlines concerns identified. Stakeholders pointed to challenges with market share thresholds, limited access to information for the “4+ test,” and insufficient treatment of technology pools. The framework does not fully address agreements involving data or data rights, and ongoing changes in digital and technology markets raise questions about whether the current rules remain adequate.