The meaning of this term depends on its use in the EU (www.practicallaw.com/6-107-6562) or UK competition law context:
In EU competition law, an exemption in respect of an agreement that infringes Article 101 (www.practicallaw.com/A35854)(1) of the Treaty on the Functioning of the European Union (TFEU) (www.practicallaw.com/A35020) which may be available on an individual basis under Article 101(3). Prior to 1 May 2004, only the European Commission (www.practicallaw.com/A35081) could grant an individual exemption for an agreement which had been notified to it. EC Regulation 1/2003, which entered into force on 1 May 2004, abolished the need to apply for an individual exemption, and hence the system of notifications. Companies are required to make their own assessment as to whether their conduct is exempted by Article 101(3).
In UK competition law, an exemption in respect of an agreement that infringes the Chapter I prohibition (www.practicallaw.com/A34641) in the Competition Act 1998 is available on an individual basis. Prior to 1 May 2004, an individual exemption could only be obtained by notifying an agreement to the Office of Fair Trading (www.practicallaw.com/A36546) (OFT). When implementing EC Regulation 1/2003, the UK decided to abolish the UK system of notifications in parallel. Companies must therefore make their own assessment as to whether their conduct is exempt from the Chapter I prohibition.