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Public Transport Ticketing Schemes Block Exemption

Competition Markets Authority

September 20
10:03 2024

The CMA is reviewing the PTTSBE to inform its recommendation to government on whether to extend its duration, with or without further amendments, or allow it to lapse on 28 February 2026 (or revoke it before that date).

Timetable

Date Action
28 February 2026 PTTSBE expires, is varied, or is replaced
December 2024 (estimated) CMAs final recommendation to Secretary of State
20 September 2024 to 25 October 2024 Consultation on CMAs proposed recommendation to Secretary of State
24 May 2024 Call for inputs closes
February to April 2024 Initial evidence gathering and stakeholder engagement

Consultation on the CMAs proposed recommendation to the Secretary of State

20 September 2024: The CMA is consulting on its proposed recommendation to the Secretary of State for Business and Trade that the PTTSBE should be continued.

Call for inputs

22 April 2024: The CMA issued a call for inputs to enable interested parties to share their views, in particular on any UK-specific issues relating to the PTTSBE. The call for inputs ran from 22 April 2024 to 24 May 2024.

Context

The Competition Act 1998 (CA98) prohibits agreements between businesses that restrict competition in the UK (unless they meet the conditions for exemption in section 9(1) of the CA98 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.

In this way, a block exemption regulation provides legal certainty for businesses.

The PTTSBE

The PTTSBE automatically exempts certain types of agreements establishing public transport ticketing schemes from the Chapter I prohibition insofar as they meet certain conditions set out in the PTTSBE.

Ticketing schemes can enable passengers to purchase tickets or travel cards that are valid on the services of all participating operators. Without these schemes, passengers might have to buy separate tickets from each operator they use.

The CMA is reviewing the PTTSBE in order to make a recommendation to the Secretary of State for Business and Trade on whether the PTTSBE should be continued, with or without further amendments, or whether it should be allowed to expire on 28 February 2026.

The CMAs review

The CMAs review will assess whether the PTTSBE continues to meet its intended purpose and will take account of the interests of businesses and consumers, as well as considering the impact of recent developments in technology and industry business models.

The CMAs review will also include assessing the public transport ticketing schemes block exemption guidance that accompanies the PTTSBE.

Background

In accordance with the CA98, the CMA has a role in advising the Secretary of State for Business and Trade (previously the Secretary of State for Business, Energy and Industrial Strategy) on the making of new block exemptions and varying or revoking existing block exemptions.

The PTTSBE was first introduced in 2001, and has since been amended by:

On 10 December 2015, the CMA recommended to the then Secretary of State for Business, Innovation and Skills that the PTTSBE be renewed for a ten-year period until 28 February 2026. Previously, the Office of Fair Trading, between 2003 and 2005 and in 2010, reviewed and recommended that the PTTSBE be renewed.

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.

Updates to this page

Published 22 February 2024
Last updated 20 September 2024 +show all updates
  1. Responses to call for input published, draft proposed recommendation to the Secretary of State published and consultation opened.

  2. Call for inputs published

  3. First published.

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