Background
The EU and national competition rules prohibit agreements that restrict or distort competition. This applies broadly to different business arrangements, including agreements involving the licensing of technology.
The Commission’s updated Technology Transfer Block Exemption Regulation (“TTBER”) and related guidelines (“Guidelines”) provide businesses with rules and guidance to help them assess whether their licensing agreements comply with the EU competition rules. The TTBER creates a “safe harbour”: if an agreement meets the conditions set out in the TTBER, it is considered not to restrict or distort competition.

Key aspects
The new TTBER package that entered into force on 1 May 2026 includes several important changes for businesses active in technology licensing. Here is a high-level overview of the key aspects.

Market share thresholds
The availability of the safe harbour depends primarily on the market share of the parties. If the parties are competitors, the safe harbour applies only if their combined market share does not exceed 20% on any relevant market. For non-competing undertakings, the market share threshold for each party separately is 30%.
The new TTBER clarifies that if the technologies have not yet generated sales of contract products, they are treated as having 0% market share, making it easier for early-stage technologies to fall within the safe harbour. The new TTBER has also increased the grace period from two to three years, allowing the safe harbour to remain applicable for longer where market shares exceed the threshold during the term of the agreement.

Data licensing and LNGs
The revised Guidelines contain a new section on data licensing which clarifies, for example, that the licensing of databases protected by copyright or the database rights is generally pro-competitive. The Commission will also assess this type of data licensing by applying the same principles as for technology licensing agreements. Where the licensing agreements concern data that is not protected by database rights or copyright in databases, the Commission will assess whether it is appropriate to apply the principles of the TTBER and the Guidelines, on a case-by-case basis.
The revised Guidelines also assess Licensing Negotiation Groups (LNGs), which are arrangements whereby technology implementers agree to negotiate the terms of technology licenses jointly. This section considers the possible pro- and anti-competitive effects of LNGs, the distinction between genuine LNGs and buyer cartels, and the relevant factors for assessing whether an LNG is likely to restrict competition.

Conclusion
For businesses entering into or updating technology licensing agreements, these rules remain a key tool for assessing competition law risk and ensuring agreements benefit from the available safe harbour.
Agreements that were already in force on 30 April 2026 and qualified for the exception under the old rules can continue to benefit from that exemption until 30 April 2027, even if they do not meet the requirements of the new TTBER. From 1 May 2027, those agreements must comply with the new rules to continue benefiting from the block exemption.