The EU Block Exemption Regulations, which were in force at the end of the Brexit transition period (i.e., on 31 December 2020) under EU law, were retained in UK law when the transition period came to an end. The CMA explains that agreements between businesses that meet the conditions of any of the retained block exemption regulations are presumed to be lawful under UK competition law. In this way, the retained block exemption regulations provide legal certainty for businesses.

The CMA has a role in advising the Secretary of State for Business, Energy and Industrial Strategy (BEIS) on varying or revoking retained block exemption Regulations or replacing them with UK legislation when they expire.

The CMA is reviewing the retained Vertical Block Exemption Regulation (retained VBER) for the purpose of making a recommendation to the Secretary of State in accordance with the Competition Act 1998 about whether to replace the retained VBER when it expires on 31 May 2022. The CMA plans to consult on its proposed recommendation in summer 2021.

The CMA will be reviewing the other retained Block Exemption Regulations in due course in order to make a recommendation to the Secretary of State.

The consultation closes on 6 July 2021. To access the consultation documentation, click here.