Rail, Road and Inland Waterway Transport Block Exemption Regulation
The CMA has reviewed the Rail, Road and Inland Waterway Transport Block Exemption Regulation.
Administrative timetable
| Date | Action |
|---|---|
| 10 December 2024 | Update report published |
| September 2024 (estimated) | CMA’s final recommendation to Secretary of State for Business and Trade |
| June 2024 (estimated) | Consultation on CMA’s proposed recommendation to Secretary of State for Business and Trade |
| 11 March 2024 | Call for inputs |
On 10 December 2024, the CMA published an update report, following its review of the evidence received through a Call for Inputs and further assessment. The CMA has concluded that the RRIWTBER should be retained for the time being, rather than being varied, revoked or replaced with a new block exemption order.
The CMA plans to re-review the case for the RRIWTBER to be retained once the planned programme of rail reform has progressed and the future shape of the industry is more clearly established.
Read the update report and consultation responses on the Rail, Road and Inland Waterway Transport Block Exemption Regulation consultation page.
11 March 2024: The CMA has issued a Call for Inputs to enable interested parties to share their views, in particular on any UK-specific issues relating to the RRIWTBER. The Call for Inputs runs until 5pm on 10 April 2024.
- Rail, Road and Inland Waterway Transport Block Exemption Regulation consultation (11.3.24)
- (11.3.24)
Context
The Competition Act 1998 prohibits agreements between businesses that restrict competition in the UK (unless they meet the conditions for exemption in section 9(1) of the Competition Act 1998 or are otherwise excluded). This is known as the Chapter I prohibition.
An agreement can be exempt from the Chapter I prohibition on the basis that it produces benefits which outweigh its impact on competition. Ordinarily, businesses must make their own assessment of whether an agreement which restricts competition can be justified based on its benefits.
In certain cases, it may be clear that all agreements in a particular category are likely to be exempt agreements. In these circumstances, a ‘block exemption’ may be made to automatically exempt agreements in that category provided that they satisfy the conditions set out in the block exemption.
A block exemption regulation automatically exempts agreements of a certain category from the Chapter I prohibition if the agreement satisfies the conditions set out in the block exemption regulation. In this way, a block exemption regulation provides legal certainty for businesses.
Following the UK’s exit from the EU, the EU block exemption regulations that were in force under EU law at the end of the Transition Period on 31 December 2020 were retained in UK law. For details on what these block exemptions cover, see Guidance on the functions of the CMA after the end of the Transition Period (paragraphs 4.31 to 4.36).
Under the Retained EU Law (Revocation and Reform) Act 2023, what was previously ‘retained EU law’ became ‘assimilated law’ on 1 January 2024.
The RRIWTBER therefore forms part of UK competition law as an assimilated block exemption, subject to certain amendments that were made as part of the EU withdrawal process. A copy of the instrument is available for review.
The RRIWTBER automatically exempts two categories of agreements insofar as they meet certain conditions set out in the RRIWTBER:
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certain agreements relating to technical improvements or technical cooperation in the fields of rail, road and inland waterways
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certain agreements the purpose of which is the constitution and operation of groupings of small or medium-sized road or inland waterway transport undertakings with a view to carrying on transport activities and related agreements concerning the joint financing or acquisition of transport equipment or supplies
In accordance with the Competition Act 1998, the CMA has a role in advising the Secretary of State for Business and Trade (Secretary of State) on the making of new block exemptions and varying or revoking existing assimilated block exemption regulations.
Personal data
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Updates to this page
Published 11 March 2024Last updated 10 December 2024 + show all updates
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Update report published.
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First published.