The European Commission ("Commission") has published an informal guidance letter assessing the compatibility of a proposal by the Automotive Licensing Negotiation Group ("ALNG") with EU competition rules. The initiative seeks to facilitate joint licensing negotiations for standard-essential patents ("SEPs") in the automotive sector.
According to the Commission, the proposed arrangement does not raise antitrust concerns provided that four cumulative conditions are met: (i) ALNG focuses only on standards that are not specific to the automotive sector and for which ALNG members' total share of demand does not exceed 15% of the total demand for the relevant SEPs or standards; (ii) ALNG remains open to other relevant players in the automotive sector; (iii) participation in ALNG is voluntary, and companies may join or leave the initiative at any time; and (iv) no exchange of competitively sensitive information occurs between ALNG members beyond what is objectively necessary for the process.
The Commission further noted that if ALNG members hold no more than 15% market share in both the purchasing and selling markets, this would be a strong indicator that the cooperation is unlikely to produce anticompetitive effects. This initiative also forms part of the Commission's broader efforts to foster a clean, competitive and resilient industrial base in line with the European Union's 2050 Clean Transition objectives.
(Commission – 09.07.2025)
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