This Order may be cited as the Competition Act 1998 (Public Transport Ticketing Schemes Block Exemption) (Amendment) Order 2025 and comes into force on 1st January 2026.
This Order, enacted in exercise of powers under the Competition Act 1998, amends the Competition Act 1998 (Public Transport Ticketing Schemes Block Exemption) Order 2001 following a recommendation from the Competition and Markets Authority.
The key changes involve removing the fixed expiration date for the exemption, thereby making it permanent unless reviewed, adjusting definitions related to connecting services—specifically regarding trunk bus services—and removing the definition of a "working day" to align with the main Act.
The document confirms the amendments extend across England, Wales, Scotland, and Northern Ireland, and sets a new mandatory review date of 1st January 2031.
Arguments For
Removing the fixed duration for the block exemption order ensures continued regulatory clarity and stability for public transport ticketing schemes, preventing an automatic lapse of beneficial agreements.
Clarifying the definition of a "connecting service" better integrates long-distance trunk bus services into the ticketing scheme framework, potentially allowing for more seamless passenger journeys integrated with local transport.
Streamlining definitions by removing outdated or redundant terms, such as the definition of "working day," simplifies the legal text and aligns it with existing statutory definitions under the Competition Act 1998.
Implementing the amendments based on a recommendation from the Competition and Markets Authority (CMA) suggests the changes are evidence-based and aimed at improving competition and consumer welfare in the transport sector.
Arguments Against
Extending the block exemption indefinitely, rather than setting a future sunset date, removes a mandatory trigger for future regulatory review, potentially delaying necessary updates or removals of outdated exemptions.
Removing the provision that the Order would cease to have effect reduces the proactive oversight required by the Secretary of State regarding ticketing schemes.
Altering the definition of "connecting service" might negatively affect how long-distance bus operators structure fares or ticketing arrangements, possibly leading to complexity versus clarity depending on market interpretation.
The accompanying note states no adverse impact on business is foreseen, but this blanket assessment might overlook nuanced impacts on smaller operators or ancillary services not directly covered by the Order.
In January 2025, in accordance with section 8(1) and (4) of the Competition Act 19981 (“the Act”), the Competition and Markets Authority (“the CMA”) published details of its proposed recommendation to the Secretary of State that the Competition Act 1998 (Public Transport Ticketing Schemes Block Exemption) Order 20012 be amended.
In January 2025, the Competition and Markets Authority (CMA) proposed to the Secretary of State that the 2001 Order concerning block exemption for public transport ticketing schemes should be changed.
This action was taken under specific sections of the Competition Act 1998, which is referred to as 'the Act'.
The CMA reviewed feedback received concerning its initial proposal.
Following this review, the CMA formally recommended that the Secretary of State proceed with varying the existing Order, as permitted by section 8(3) of the Competition Act 1998.
The Secretary of State has decided to give effect to the recommendation without modification and makes this Order in exercise of the powers conferred by sections 6(2)(a) and (7) and 71(3)(a) of the Act.
The Secretary of State chose to implement the CMA's recommendation exactly as proposed, without making any changes.
This action is authorized by specific powers granted within sections 6(2)(a), 6(7), and 71(3)(a) of the Competition Act 1998.
Citation, commencement and extent1.
Article 1 establishes the official title of this amending legislation, its starting date, and the geographical areas within the UK to which it legally applies.
(1)
The official title of this legislation is the Competition Act 1998 (Public Transport Ticketing Schemes Block Exemption) (Amendment) Order 2025.
The amendments officially take effect starting January 1st, 2026.
(2)
This Order extends to England and Wales, Scotland and Northern Ireland.
The territorial extent of this Order covers all jurisdictions within the United Kingdom: England, Wales, Scotland, and Northern Ireland.
Amendment of the Competition Act 1998 (Public Transport Ticketing Schemes Block Exemption) Order 20012.
Article 2 details the specific changes being made to the existing Competition Act 1998 (Public Transport Ticketing Schemes Block Exemption) Order 2001.
(1)
The Competition Act 1998 (Public Transport Ticketing Schemes Block Exemption) Order 2001 is amended as follows.
This indicates that the subsequent provisions within Article 2 will list the specific modifications made to the 2001 Order.
(2)
In Article 2, omit the words from “and shall cease to have effect” to the end.
This instruction removes language from Article 2 of the 2001 Order that specified a date upon which the Order would automatically expire, in effect removing its sunset clause.
(3)
In Article 3—
(a)
in the definition of “connecting service”, omit “a bus service,”;
(b)
in the definition of “vehicle”, for “animal; and” substitute “animal.”
;
(c)
omit the definition of “working day”.
Article 3 of the 2001 Order is updated in three ways: The phrase "a bus service" is removed from the definition of "connecting service." The definition of "vehicle" is simplified by replacing the text "animal; and" with simply "animal.".
Finally, the entire definition for the term "working day" is deleted from the Order.
(4)
In Article 22(1), for “28th February 2021” substitute “1st January 2031 and subsequently at intervals not exceeding five years”
.
Article 22(1) of the 2001 Order, which likely relates to review periods, is changed.
The original date of February 28th, 2021, is replaced with instructions for review by January 1st, 2031, and then at intervals that do not exceed five years thereafter.
Kate Dearden
Parliamentary Under Secretary of State
Department for Business and Trade
This section contains the formal details regarding the signing of the Order.
Kate Dearden, acting as Parliamentary Under Secretary of State for the Department for Business and Trade, signed this instrument on November 25th, 2025.
Explanatory Note
(This note is not part of the Order)
This Order amends the Competition Act 1998 (Public Transport Ticketing Schemes Block Exemption) Order 2001 (S.I. 2001/319) (“the 2001 Order”). The 2001 Order is a block exemption order under section 6 of the Competition Act 1998 (c. 41) (“the Act”), which gives effect to the recommendation originally made by the Director General of Fair Trading that public transport ticketing schemes (as defined in the 2001 Order) for local transport services constitute a category of agreements which are likely to be agreements to which section 9(1) of the Act applies. Agreements which fall within the category specified in the 2001 Order are exempt from the prohibition in Chapter 1 of the Act.
The 2001 Order was amended by the Competition Act 1998 (Public Transport Ticketing Schemes Block Exemption) (Amendment) Order 2016 (S.I. 2016/126) to extend its duration so that it would cease to have effect at the end of the period of twenty-five years commencing on 1st March 2001. On the recommendation of the Competition and Markets Authority this Order varies the 2001 Order so that it will continue without a fixed duration.
Article 2 also amends the definition of “connecting service” to make clear that the definition includes the long distance parts of trunk bus services (which are in effect, long distance services which have some parts operating as local public transport services). This would mean that where passengers are using a trunk bus service to travel longer distances, so distances of 15 miles or more from their starting point, the travel operator could offer passengers a long distance add-on. Where passengers use a trunk bus service to make a local journey of less than 15 miles from their starting point, this would fall outside the definition of a long distance service and therefore a connecting service, and instead be treated as a local public transport service for the purposes of a short distance add-on.
Article 2 also omits the definition of “working day” in the 2001 Order. This amendment is incidental or supplemental and is intended to ensure that the definition of “working day” for the purposes of the 2001 Order is consistent with that in section 59(1) of the Act.
Article 2 also amends the review requirements in the 2001 Order to ensure that the Secretary of State is required to review the Order by 1 January 2031 and afterwards at five-year intervals.
A full Impact Assessment has not been prepared for this instrument as no adverse impact on business, charities, voluntary bodies or the public sector is foreseen.
The Explanatory Note clarifies that the 2001 Order grants a block exemption under competition law, exempting certain public transport ticketing schemes from the general prohibition on anti-competitive agreements.
This new Order removes the 25-year lifespan extension (from 2016) so the exemption continues indefinitely unless reviewed.
Furthermore, it clarifies that the term "connecting service" now includes the long-distance segments of trunk bus services, allowing operators to offer long-distance add-ons for journeys over 15 miles, while shorter segments remain treated as local services.
The definition of "working day" is removed for consistency with the main Act, and a mandatory review date of 1 January 2031, followed by five-year reviews, is instituted.
No full Impact Assessment was deemed necessary due to the expectation of no adverse impact.
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