Brussels GA&P (April 2014)

In general, the European Commission acknowledges the pro-competitive nature of technology transfer agreements, which stimulate research and innovation. Nevertheless, under certain circumstances, these agreements may restrict competition through market sharing or the exclusion of competing technologies, in which case they are prohibited by Article 101 of the Treaty on the Functioning of the European Union (the «Treaty»). The new regime shares the methodology of the old regime: the Regulation provides a safe harbour which exempts from the prohibition of Article 101 of the Treaty certain restrictions contained in technology transfer agreements between companies with low market power which satisfy specific conditions, whereas the Guidelines establish the criteria to be followed for the analysis of restrictions non block exempted together with guidance on the implementation of the Regulation…