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Public Transport Ticketing Schemes Block Exemption

Competition Markets Authority

April 22
11:02 2024

The CMA is reviewing the Public Transport Ticketing Schemes Block Exemption (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 Public Transport Ticking Schemes Block Exemption expires, is varied, or is replaced
December 2024 (estimated) CMAs final recommendation to Secretary of State
Summer 2024 (estimated) Consultation on CMAs proposed recommendation to Secretary of State
February to Summer 2024 Initial evidence gathering and stakeholder engagement
22 April 2024 Call for inputs

Call for inputs

22 April 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 Public transport ticketing schemes block exemption. The call for inputs runs until 5pm on 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 Block Exemption

The Public Transport Ticketing Schemes Block Exemption Order (the Block Exemption) 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 Block Exemption.

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 Block Exemption in order to make a recommendation to the Secretary of State for Business and Trade (the Secretary of State) on whether it should be renewed or varied. Absent a renewal or variation, the Block Exemption will expire on 28 February 2026.

The CMAs review

The CMAs review will assess whether the Block Exemption 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 CMA plans to consult on its proposed recommendation to the Secretary of State in summer of 2024.

The CMA is starting its review with initial evidence gathering and stakeholder engagement. If you would like to get in touch with the case team to provide views on the Block Exemption, or to register your interest in this review, please contact us at pttsbereview@cma.gov.uk.

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

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 Block Exemption 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 Block Exemption 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 Block Exemption 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.

Published 22 February 2024
Last updated 22 April 2024 +show all updates
  1. Call for inputs published

  2. First published.

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