European Union: Technology Transfer Block Exemption Regulation enters into force

On 1 May 2026, the Technology Transfer Block Exemption Regulation (TTBER) enters into force, replacing the previous regulatory framework for technology licensing. The regulation exempts certain categories of technology transfer agreements from the prohibition of anti-competitive agreements under Article 101 of the Treaty on the Functioning of the European Union (TFEU). The exemption applies to licensing agreements for technology rights, including patents, software copyrights, and know-how, provided the market share of competing undertakings does not exceed 20% or 30% for non-competing undertakings. The Regulation defines hardcore restrictions that disqualify an agreement from the exemption, such as price-fixing, output limitations, and certain market allocations. Furthermore, it clarifies that the Commission or national competition authorities may withdraw the benefit of the exemption if an agreement is found to have effects incompatible with the internal market, such as restricting third-party access to technologies. A transitional period is provided until 30 April 2027 for agreements already in force on 30 April 2026 that satisfied the conditions of the former Regulation (EU) No 316/2014. The Regulation is scheduled to remain in effect until 30 April 2038.