European Commission Updates Rules for Technology Licensing Agreements

BRUSSELS, April 17, 2026 — The European Commission has adopted updated competition rules governing technology licensing agreements, introducing new guidance reflecting developments in the digital economy, including the growing importance of data and standard-essential technologies.

The revised framework includes a new version of the Technology Transfer Block Exemption Regulation (TTBER) and updated guidelines on the application of Article 101 TFEU to technology transfer agreements. The rules replace the previous regime introduced in 2014 and will enter into force on 1 May 2026.

Framework for licensing technology

Technology transfer agreements typically involve companies licensing intellectual property rights—such as patents, design rights or software copyrights—to other firms so they can produce goods or services.

Such agreements can promote competition by facilitating the spread of technology and encouraging research and development, although certain contractual restrictions can also have anti-competitive effects.

Under EU law, agreements that meet specified conditions can benefit from the TTBER exemption, meaning they are automatically deemed compatible with competition rules despite falling within the scope of Article 101’s prohibition on restrictive agreements.

Addressing developments in the digital economy

The updated rules aim to reflect changes in technology markets and provide clearer guidance for businesses operating in digital industries.

One major addition is a new section addressing data licensing agreements, reflecting the strategic role data plays in modern business models. The Commission said licensing databases protected by copyright or the EU database right will generally be considered pro-competitive, and such arrangements will be assessed using the same principles applied to traditional technology transfer agreements.

The revised guidelines also address licensing negotiation groups (LNGs)—arrangements where companies jointly negotiate licensing terms for technologies they need, such as patents incorporated into industry standards.

The Commission clarified how regulators will distinguish legitimate negotiation groups from buyer cartels, and outlined safeguards that participants can adopt to reduce the risk of breaching EU competition law.

Clarifications on technology pools and market share thresholds

Additional changes aim to simplify how businesses apply the TTBER rules in practice. The Commission has clarified how market share thresholds should be assessed when technology licensing takes place before a technology has been commercialised.

The updated guidelines also refine conditions governing technology pools, which are arrangements in which multiple companies combine intellectual property rights and license them as a package. Such pools often underpin technology standards, particularly in sectors like telecommunications.

The revisions aim to ensure that the regulatory “safe harbour” for technology pools applies only to arrangements that comply with EU competition law.

Supporting innovation and investment

Teresa Ribera said the updated rules are intended to provide businesses with clearer guidance for licensing in fast-evolving technology markets.

“Clear and predictable rules are essential for innovation to thrive,” Ribera said, adding that pro-competitive licensing can help technology—including data—circulate more widely while encouraging investment in research and strengthening Europe’s competitiveness.

The revised rules follow an extensive review process that included stakeholder consultations, expert studies and an impact assessment conducted between 2024 and 2025.

Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_26_809

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