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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 or are otherwise excluded). This is known as the Chapter I prohibition.

An agreement is exempt from the Chapter I prohibition if it creates sufficient efficiencies and benefits to outweigh any anti-competitive effects. 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 regulation. In this way, a block exemption provides legal certainty for businesses.

Following the UKs 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 the retained block exemptions cover, see Guidance on the functions of the CMA after the end of the Transition Period (paragraphs 4.31 to 4.36).

The retained Liner Shipping Consortia Block Exemption Regulation (CBER), which expires on 25 April 2024, sets out an automatic exemption for certain agreements between liner shipping companies, allowing them to cooperate and provide joint services through consortia. This includes the joint operation of liner shipping services, capacity adjustments in response to fluctuations in supply and demand, the joint operation or use of port terminals, and certain other ancillary activities. The CBER does not allow liner shipping companies to agree to fix prices, otherwise limit capacity or sales, or allocate markets or customers.

The CMAs review of the retained CBER

The CMAs review will assess whether the retained CBER meets its intended purpose in order to make a recommendation to government on whether to replace or vary it when it expires. In carrying out its review, the CMA will take account of specific features of the UK economy serving the interests of UK businesses and consumers. It will also consider the possible implications for the retained CBER of recent developments in the liner shipping sector, including the impact of global supply chain difficulties.

The European Commission announced on 9 August 2022 that it is carrying out a review of the EU CBER. It previously decided, in 2020, to keep the block exemption in place until April 2024. At that time, the European Commission concluded that the block exemption remained fit for purpose and resulted in efficiencies for carriers and lower prices and better quality of service for consumers.

What the CMA is planning to do and when

The CMA will provide further information on this webpage in due course regarding the review process for the retained CBER. The CMA expects to consult on its proposed recommendation in 2023 and that the review process will be similar to that of previously reviewed retained block exemptions.

If you have any queries, please contact us at cberreview@cma.gov.uk.

Background

In accordance with the Competition Act 1998, the CMA has a role in advising the Secretary of State for Business, Energy and Industrial Strategy on varying or revoking retained block exemption regulations, or replacing them with UK legislation when they expire.

The CMA has recently carried out reviews of the retained Vertical Block Exemption Regulation, the retained Horizontal Block Exemption Regulations, and the retained Motor Vehicle Block Exemption Regulation.

Personal data

When handling personal data (like your contact details), we comply with data protection law, as set out in the UK General Data Protection Regulation and the Data Protection Act 2018 and other law designed to protect sensitive information.

For more information about the CMAs statutory functions, how the CMA processes personal data and your rights relating to that personal data (including your right to complain), please visit the CMAs Personal Information Charter.