Technology Transfer Agreements: What the New TTBEO Means for Your Business

The Technology Transfer Block Exemption Regulation (TTBER) expired on 30 April 2026. For many businesses, TTBER provided a ‘safe harbour’ for qualifying agreements from prohibitions under competition law, providing legal certainty by avoiding the need to scrutinise individual agreements under the individual exemption which were unlikely to be harmful to competition.

Ahead of its expiry in 2026, the Competition and Markets Authority (CMA) recommended that the TTBER be replaced with a new UK-specific regime – the Competition Act 1998 (Technology Transfer Agreements Block Exemption) Order 2026 (‘TTBEO’).

The TTBEO came into force on 1 May 2026, for a duration of 12 years (expiring on 31 December 2038) applying to the UK as a whole. There is a one-year transitional period for businesses to ensure their agreements remain compliant. Significantly, there are no changes to the scope of hardcore or excluded restrictions.

Although the TTBEO largely maintains the previous exemption regime, there are key variations and businesses will need to review existing agreements, understand the updated definitions, and check whether any changes may be required.

It is hoped that the new order will “help ensure that businesses are not prevented or disincentivised from entering into agreements that the CMA considers to be essentially benign or beneficial”.

This article explains the key changes, the practical impact on commercial agreements, and the steps businesses should begin taking now.

How the UK TTBEO differs from the TTBER

The TTBEO introduces a number of updates to the existing TTBER framework. In particular, it:

• updates key definitions;
• introduces a new exemption test for technology markets; and
• clarifies certain provisions in line with the draft revised EU TTBER.

The table below highlights these key variations, comparing how each area was treated under the previous regime (TTBER) and how it will operate under the new UK regime (TTBEO).

Scope of qualifying “technology rights”

Market share thresholds

Calculation of market shares

“Footprint” approach to market shares

Grace period for exceeding market share thresholds

Definitions of “active” and “passive” sales

Transitional arrangements for existing technology transfer agreements

Article 13 of the TTBEO introduces transitional provisions to give businesses time to adapt to the new regime.

In summary, where an agreement was exempt from the Chapter I prohibition under the assimilated TTBER immediately before 1 May 2026, but would not qualify for exemption under the TTBEO, it will continue to be treated as compliant until 30 April 2027. These agreements are referred to as “pre-existing technology transfer agreements”.

However, this transitional relief is not absolute. The block exemption does not apply to any obligation in a pre-existing technology transfer that fell within article 5 (excluded restrictions) of the assimilated TTBER immediately before 1 May 2026. Businesses should therefore not assume that all aspects of existing arrangements remain protected during the transition period.

Practical steps for businesses preparing for the TTBEO

With the introduction of the TTBEO, businesses should take proactive steps to assess whether they still qualify under the new framework. Businesses operating across the UK and EU should bear in mind that differences between the UK and EU regimes will most likely occur.

Early action will help avoid disruption and ensure continued compliance.

• Review existing agreements: Businesses should assess their current technology transfer agreements to confirm whether they continue to qualify under the new framework. While many agreements that are compliant under the TTBER are likely to remain compliant under the TTBEO, this should not be assumed without review.
• Factor in UK–EU divergence: Businesses operating across both the UK and EU should be particularly mindful that differences between the regimes are likely to emerge over time, and agreements may need to be structured to account for both.
• Make use of the transitional period: Agreements that meet the conditions of the assimilated TTBER will continue to benefit from exemption until 30 April 2027. This one-year transition period provides an important window to make any necessary updates.
• Update new agreements: All new technology transfer agreements should be drafted with the TTBEO in mind, ensuring that they reflect the updated definitions, tests, and clarifications introduced by the new regime.

Generally, with minor exemptions, it is likely that an agreement that is currently compliant with the TTBER will satisfy the TTBEO.

Early action will help ensure a smooth transition and reduce the risk of agreements falling outside the scope of the block exemption.

Is Your Business Ready for the TTBEO?

If your business relies on technology licensing or collaboration agreements, now is the time to review your arrangements in light of these changes.

We can help you assess whether your existing agreements remain compliant, identify any areas of risk, and update your contracts to align with the TTBEO – ensuring you continue to benefit from block exemption protection with confidence.

Get in touch with our team to discuss how the new regime could affect your business.