Executive Summary

The European Commission has adopted a revised Technology Transfer Block Exemption Regulation (TTBER)[1] and Guidelines on the application of Article 101 TFEU to technology transfer agreements (Guidelines)[2], replacing the 2014 framework which expires on 30 April 2026. The revised rules apply from 1 May 2026 and reflect a four‑year evaluation and impact‑assessment process aimed at preserving legal certainty for technology licensing while addressing data‑driven markets, standards‑based ecosystems, and new cooperative licensing models.

For companies in the automotive and transportation sector – including OEMs, Tier 1 suppliers, mobility providers, and infrastructure players – the revisions are particularly relevant given the increasing importance of:

  • software‑enabled vehicles,
  • connected and autonomous driving technologies,
  • sensor and vehicle‑generated data,
  • standard‑essential patents (SEPs), and
  • collective approaches to negotiating licensing.

In this practice note, Squire Patton Boggs’ Automotive & Transportation Industry Group, in collaboration with its Antitrust & Competition and Intellectual Property & Technology Practice Groups, summarises the main changes and their practical sector implications.

1. Scope and Purpose of the Revised TTBER

The TTBER provides (under Article 101(3) of the Treaty on the Functioning of the EU (TFEU)) a safe harbour from the prohibition on anti-competitive agreements (contained in Article 101(1) TFEU) for qualifying technology transfer agreements (typically IP and know‑how licences). Agreements within scope are presumed to generate efficiencies outweighing any restrictive effects on competition. The accompanying Guidelines support self‑assessment for agreements inside and outside the block exemption.

The Commission confirmed that the overall structure of the regime remains intact, with targeted and evolutionary changes rather than a wholesale redesign.

2. Clarification of Market‑Share Thresholds (Technology Markets)

Key Changes

  • Zero market share threshold for pre‑commercial technologies: Technologies that have not yet generated sales of contract products are deemed to have a market share of 0% for TTBER purposes[3].
  • Extended grace period: Where market shares later exceed the thresholds, the grace period allowing continued reliance on the TTBER is extended from two to three years[4].
  • Additional methodological guidance is provided on calculating market shares in technology markets[5].

Relevance for Automotive & Transport

This clarification is particularly valuable for:

  • early‑stage licensing of autonomous driving software,
  • new connectivity standards, and
  • emerging battery and powertrain technologies.

OEMs and suppliers can structure licences for pre‑commercial or developmental technologies with greater legal certainty.

3. New Guidance on Data Licensing

Commission Approach

The revised Guidelines introduce a dedicated, pro-innovation section on data licensing, acknowledging its growing importance while stopping short of a blanket block exemption.

Key points include:

  • Data licensing may fall under the TTBER where the data qualifies as a covered technology right (e.g. production know‑how)[6].
  • For agreements concerning databases protected by copyright or the EU sui generis database right, the Commission will generally apply TTBER principles and Guidelines[7].  By contrast, the Commission may continue to apply general principles (regarding the application of Article 101 to intellectual property rights) to restrictions of competition in data licensing agreements in all other cases[8].
  • Other data licensing arrangements require case‑by‑case Article 101 analysis,and the Commission will assess whether it is appropriate to apply the principles of the TTBER and the Guidelines[9].
  • Information exchange inherent in database licensing will often not constitute a restriction by object, provided it is objectively necessary and proportionate to implement the agreement[10]. Otherwise, the Horizontal Guidelines[11] will apply to assess whether the exchange of information is anti-competitive[12].
  • Data‑sharing obligations under the EU Data Act will generally fall outside of the prohibition in Article 101 TFEU, absent collusive intent[13].

Sector Impact

For automotive and transport companies, this guidance is critical for:

  • vehicle‑generated data licensing,
  • map and sensor data sharing,
  • mobility‑as‑a‑service platforms,
  • predictive maintenance and fleet analytics.

While no automatic safe harbour applies, the Guidelines offer comfort that data licensing agreements can be pro‑competitive when properly structured.

4. Amendments to Technology Pool Guidance

SEP and technology pools often support standards‑based industries[14], including vehicle connectivity, infotainment, and charging infrastructure. While the Commission has backed off its plans for tailored SEP regulation, the revised Guidelines tighten the conditions of the technology pool soft safe harbour.

Main Updates

  • Enhanced essentiality transparency: Pools must disclose the individual rights included and the methodology used to assess essentiality[15].
  • No double dipping: Licensees should not pay more than once for the same technology rights.
  • FRAND clarified: The obligation to license on FRAND terms explicitly applies to licences granted by the pool itself. Pools will also need to continually review whether all the included technologies are still essential and may have to amend the licence offering and pricing accordingly.

Practical Implications

Automotive players involved in SEP or technology pools (e.g. connectivity standards) should review:

  • pool governance and disclosure practices,
  • ongoing essentiality of pool technologies, and
  • royalty structures across bilateral and pool licences.

5. New Guidance on Licensing Negotiation Groups (LNGs)

The TTBER excludes LNGs from its scope[16], but the revised Guidelines introduce entirely new guidance on LNGs, following growing interest in collective negotiations by technology implementers.

Key Principles

  • Genuine LNGs should be transparent, limited to negotiating licence terms, involve minimal information exchange, and not coordinate downstream conduct – they should not restrict competition by object.
  • Potential risks include excessive buyer power, downstream coordination, and foreclosure of non‑members[17].
  • No formal safe harbour applies, but practical safeguards are identified to mitigate Article 101 risks.

Automotive Context

This builds on the Commission’s recent endorsement of the Automotive Licensing Negotiation Group, marking a notable change in the scrutiny of LNGs in SEP‑heavy licensing environments.

6. Other Notable Updates

The revised TTBER and Guidelines also:

  • Align definitions of active and passive sales with the Vertical Block Exemption Regulation[18].
  • Update guidance on competitor and non-competitor status, settlement agreements, and potential competitors to reflect case law.
  • Expand examples where the Commission may withdraw the benefit of the block exemption.

Key Takeaways for Automotive & Transportation Companies

  • The revised TTBER preserves a predictable safe harbour while offering clearer rules for emerging technologies.
  • Data licensing is formally recognised as pro‑competitive but requires careful structuring.
  • Technology pools and SEP licensing face higher transparency expectations.
  • Collective licensing strategies remain possible, but LNGs require disciplined design.

Overall, the revised framework supports innovation‑driven sectors while reinforcing the need for robust competition law self‑assessment in increasingly interconnected automotive value chains. If you wish to discuss in confidence your technology licensing plans or current arrangements, reach out to the antirust and IP lawyers of Squire Patton Boggs’ Automotive & Transportation Industry Group. An interdisciplinary approach that connects all the rings of these increasingly interconnected automotive value chains is a core part of our firm’s DNA.

[1] Commission Regulation (EU) 2026/877 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of technology transfer agreements [2026] OJ C, C/2026/2323

[2] Guidelines on the application of Article 101 of the Treaty on the Functioning of the European Union to technology transfer agreements [2026] OJ C, C/2026/2323

[3] TTBER, Recital 13

[4] TTBER, Article 8(e)

[5] TTBER, Article 8(a)-(b)

[6] Guidelines, Paragraph 63

[7] Guidelines, Paragraph 64

[8] Guidelines, Paragraph 66

[9] Guidelines, Paragraph 67

[10] Guidelines, Paragraph 70

[11] Chapter 6 of the Guidelines on the applicability of Article 101 of the Treaty on the Functioning of the European Union to horizontal co-operation agreements [2023] OJ C 259 (the Horizontal Guidelines)

[12] Guidelines, Paragraph 71

[13] Guidelines, Paragraph 75

[14] Guidelines, Paragraph 268

[15] Guidelines, Paragraph 272

[16] TTBER, Recital 8

[17] Guidelines, Paragraph 303

[18] TTBER, Article 1(s)-(t)